Multi-Color Corporation (MCC), the most active acquisitor in the label industry, will soon own an established converting company in Poland. MCC has entered into a share purchase agreement to acquire 100 percent of Warszawski Dom Handlowy (WDH) in Warsaw. The purchase price is approximately $9.3 million (PLN 26 million), payable in cash. The closing is expected to be on or about July 1, and the accretion to earnings is expected to be neutral for MCC.
WDH had revenues of approximately USD $11 million (PLN 32 million) in 2010. The company supplies large consumer products international brand owners in the home and personal care markets, consistent with MCC's larger customers in the United States. The company will be renamed Multi-Color WDH (Poland).
“This acquisition is consistent with our strategy to support international brand owners in more markets, especially developing markets like China and Central and Eastern Europe, says Nigel Vinecombe, president of Multi-Color. “WDH owners Andrzej Piatkowski and Miroslaw Szczesny will continue to run the company they started over 20 years ago. The company specializes in pressure sensitive labels with similar modern technologies to many of MCC's operations. We are excited about the growth opportunities in Poland and in Central and Eastern Europe, and WDH provides MCC with an excellent platform for growth in this region.”
Multi-Color, based in Batavia, OH, USA, has 17 label converting operations around the world and 1,700 employees. Its customers include prominent brand owners in the home and personal care, wine and spirits, food and beverage, and specialty consumer products markets. MCC is a public company trading on the NASDAQ Global Select Market Exchange (company symbol:LABL).