Constantia Flexibles completes sale of labels division to Multi-Color Corporation

Constantia Flexibles has received approximately 967 million USD (830 million EUR) in cash and will continue to participate in the future of Multi-Color through a 16.6 percent shareholding.

Labels & Labeling first reported the acquisition in July.

The transaction brings together the high-performing food and beverage business of Constantia Flexibles’ labels division with Multi-Color’s strong wine and spirit and home and personal care platforms, as well as an emerging global position in Healthcare. The combined annual revenues of the two businesses will be approximately 1.7 billion USD (1.5 billion EUR).

Alexander Baumgartner, CEO of Constantia Flexibles: ‘We would like to thank all employees of the labels division for their tremendous contributions to our group in the past and wish them a successful future as part of Multi-Color. Constantia Flexibles will use the proceeds from the transaction to deleverage its balance sheet and enable further acquisitions in the dynamic and consolidating flexible packaging industry. We will also focus on innovative products and services, as well as new technologies to strengthen our existing Food and Pharma businesses.’

Bernard Gautier, member of Wendel’s executive board and chairman of the supervisory board of Constantia Flexibles: ‘I am very pleased with this successful transaction. First and foremost, it recognizes the strategic value and the quality of the labels business developed over time by the extraordinary team at Constantia Flexibles. This deal provides the company with an opportunity to refocus on its core business and grow more rapidly. It also gives the company an indirect leadership position in the label industry as the largest shareholder of Multi-Color, with a 16.6 percent stake in its equity. Through this deal, Constantia Flexibles has actually contributed to the inception of a strong industry leader, and we look forward to supporting its ambitious long-term growth plan.

Wendel is majority shareholder of Constantia Flexibles, with a 60.5 percent equity holding.