Constantia Flexibles sells Labels Division
Constantia Flexibles GmbH from Vienna, Austria, has signed a sales agreement for its Labels Division with the American Multi-Color Corporation. The value of the company ranges at €1.15bn (US$1.3bn). The deal is subject to approval by the authorities and is expected to be finalised in the fourth quarter of 2017.
The lion’s share of the transaction will be paid in cash; additionally, Constantia Flexibles will receive shares of Multi-Color. As soon as the transaction is finalised, Constantia Flexibles will hold 16.6% of the outstanding shares of Multi-Color and therefore become its largest shareholder. Two representatives of Constantia Flexibles will from now on be part of the board of directors of the company.
Constantia Labels is a globally active supplier of labels for the beverage and food industry as well as for household and body care products. In 23 plants in 14 countries, the company has about 2800 employees. In 2016, the Labels Division generated a turnover of €605M.
Multi-Color was founded in 1916 with headquarters in Cincinnati, Ohio, and is one of the world’s largest label producers. Multi-Color supplies some of the most prominent brands in the sectors health products, household and bodycare, food and beverages, specialty products (automotive & consumer goods, and wine and liquors. With about 5500 employees, the company runs 45 production sites worldwide and generated a turnover of US$923M in 2017.Alexander Baumgartner, CEO of Constantia Flexibles: “After a detailed strategy review, we have decided that our strong Labels Division will fit better to another partner, who drives its constant growth. At the same time, Constantia Flexibles will participate in the future success story of Multi-Color as a shareholder. Constantia Flexibles will use the revenues from the transaction to reduce its debt ratio and enable further acquisitions in the dynamic and consolidating flexible packaging industry. We will concentrate on a further strengthening of our existing divisions Food and Pharma – with innovative products and services as well as new technologies.”