Multi-Color acquires York Label

Multi-Color Corporation has agreed to acquire 100 percent ownership of fellow US converter York Label Group. The combined company is expected to have annual revenues of approximately USD $640 million. MCC says this makes it the largest label company in the US and the fastest growing globally with revenues more than tripling since the beginning of 2008.

The approximate purchase price is USD $356 million, payable in debt assumed, Multi-Color stock and cash. The acquisition is expected to be accretive in the fiscal year ending March 2013. Closing is expected in early October 2011.  

York Label Group (owned by Adhesion Holdings), is headquartered in Omaha, Nebraska, and is privately held by Diamond Castle Holdings. Its revenues for 2010 were approximately USD $240 million, including 100 percent of its joint venture in Chile which is also being fully acquired as part of this transaction. 

The majority of York’s revenues are in the pressure-sensitive label markets for home and personal care, food and beverage, wine and spirit, and healthcare. York has 12 plants across the US, Canada and Chile with approximately 1,200 employees. 

Nigel Vinecombe, Multi-Color Corporation’s president and CEO, will continue as president and CEO of the combined company. Diamond Castle representatives Ari Benacerraf and Lee Wright will join the Multi-Color board of directors. 

Vinecombe said: ‘Our customers will benefit from increased product offerings, greater flexibility and contingency, more investments in technology, increased access to innovation and greater consistency in quality and service as we take the best resources from both businesses and create higher overall performance standards. The strong strategic fit extends to common technology platforms and raw materials. It also brings further diversity to our customer base and the opportunity to grow with a broader range of customers.

‘We have very experienced management teams in the label industry with successful track records in effective integration and York Label Group is in many ways a replica group of businesses for Multi-Color.’   

Multi-Color Corporation has secured financing with a revised five-year USD $500 million credit facility, plus $100 million accordion that provides room for future acquisitions.

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