The remaining 30 percent of the two businesses will be owned by a regional partner, Fernando Aravena. According to MCC President Nigel Vinecombe, Aravena has more than 25 years of experience in the Latin American label industry as owner and manager of operations in Chile, Argentina, Mexico, and Peru.
MCC’s initial investment is $3.7 million. Existing business assets will be transferred to two new companies, Collotype Labels (Chile) S.A. and Collotype Labels (Argentina) S.A. The companies will focus on providing premium labels to the expanding Latin American wine and spirit markets, Vinecombe says, and thus will operate using MCC's Collotype trade name.
“We have been keen to establish operations in Latin America, and see this as an attractive first step,” Vinecombe reports. “We have known Mr. Aravena for many years and appreciate this opportunity to partner with him and his established team. They have a proven track record in the region, have recently invested in the latest pressure sensitive label technology and have long standing customer relationships. Together we see exciting growth opportunities in these developing markets.”
The South American companies are the latest in a series of acquisitions and expansions by MCC since June 2010. The company has acquired two operations in Italy and one in France, has enlarged its South African converting business, and has invested in a label business in China.
Multi-Color (NASDAQ: LABL) is based in Batavia, OH, USA, has 15 operations worldwide and employs about 1,500 people.