The move is an important component of MCC’s plans for increased coverage of the large European wine and spirits markets.
Multi-Color Corporation (MCC) has announced a major step in its global expansion with the acquisition of Labelgraphics, based in Glasgow, Scotland. MCC has entered into a binding agreement to acquire 100 percent ownership of Labelgraphics Holdings for a purchase price of approximately £16.5 million less net debt. The purchase price includes a future performance based earn out of approximately 25 percent of the above total. As of press time, the acquisition was expected to close in early April, and is anticipated to be immediately accretive to earnings for Multi-Color.
Labelgraphics, established in 1983, has annual revenues of approximately £13 million and predominantly supplies the United Kingdom (UK) spirit and wine markets. Spirits are a mainstay of Scottish exports and their global shipments have exhibited strong growth to developing markets. Wines are increasingly shipped to the UK in bulk and bottled locally, requiring local label supply. Labelgraphics shares many common multi-national customers with MCC and the same label technologies and suppliers. Labelgraphics’ relocation to a brand new facility and recent additional press capacity in Glasgow provide an opportunity for significant growth.
MCC President and CEO Nigel Vinecombe says, “We have had an excellent relationship with Labelgraphics’ owners for many years. Building on the success of Alex Mulvenny, Sr., Alex and Peter Mulvenny and the current Labelgraphics’ team are the leading wine and spirit label company in the UK and rank among the best in the world for quality, service and results. We are delighted Alex Mulvenny will continue to run Labelgraphics and also be a member of our global Senior Leadership Team, including responsibility for global account management for a number of key customers.” Alex Mulvenny, Labelgraphics managing director, states, “The Labelgraphics’ senior management team looks forward to being part of MCC, including being part of the global leader in wine and spirit labels. We continue to make a long term commitment to our Scottish operation and our integration into the MCC group.”
This acquisition of Labelgraphics reinforces MCC’s commitment to the wine and spirit markets and extends its global leadership position. In particular, the move serves as an important component of MCC’s plans for significant coverage of the large European wine and spirit markets. Labelgraphics becomes part of the current European Group with operations in Italy, France and Poland reporting to European President Andrea Guidotti.