Multi-Color Corporation acquired within days of Hexagon A/NZ buy

Global label solutions provider Multi-Color Corporation (MCC) has been acquired just days after it announced its acquisition of A/NZ labels maker Hexagon.

The company’s parent company, Platinum Equity, which acquired MCC in 2019 in a public-to-private transaction and combined it with WS Packaging, another US-based labelling company the firm acquired in 2018, has inked a definitive agreement to sell MCC to Clayton, Dubilier & Rice (CD&R).

Financial terms of the transaction were not disclosed, but in connection with the transaction, CD&R also announced its signing of a definitive agreement to acquire Fort Dearborn from Advent International, and that it intends to combine MCC and Fort Dearborn to create a global label solutions company serving consumer packaged goods companies worldwide.

The transactions are expected to close by the end of 2021, subject to customary regulatory approvals and other conditions.

“We have had an outstanding partnership with Nigel (Vinecombe) and the MCC management team,” Platinum Equity partner Louis Samson said.

“We worked together to significantly transform the business and drive both organic and acquisitive growth, which led to substantial improvements in top-line and earnings performance. The company is a natural fit with Fort Dearborn and both companies will benefit from the combination.”

MCC today is one of the world’s largest producers of high-quality, pressure sensitive, in-mold and heat transfer labels and a major manufacturer of cut and stack, roll fed, aluminium and shrink sleeve labels.

The company services the world’s most prominent brands across four business segments – food and beverage, wine and spirits, home and personal care, and hardware and specialty – and has a number of acquired businesses under its belt including local companies Herrods and Hexagon.

“At MCC, we have continually worked to invest in our people, processes and technology in order to strengthen our organisation and become one of the most trusted and innovative label manufacturing leaders across the globe,” MCC CEO Nigel Vinecombe said.

“Platinum’s financial and operational support have been instrumental to our success. This combination with Fort Dearborn and the ongoing support of value-added investors provide the opportunity to continue to strengthen the business and provide best-in class service to our customers.”

CD&R CEO Nate Sleeper said bringing together the two label manufacturers will result in “strong strategic logic and promising value creation potential”.

“We look forward to working with the combined company’s leadership team to help drive innovation and enhance its offering to a highly discerning customer base around the world. We see numerous opportunities to drive operational scale, achieve sustained growth, and we believe our expertise can help position the combined company for success well into the future,” Sleeper said.

The combination of Fort Dearborn and MCC is expected to create a diversified platform across label technologies, end categories, geographies and customers. The combined company is expected to generate approximately $3 billion of annual revenue.

David Scheible, operating advisor to CD&R funds, will serve as chairman of the combined company. Scheible is the former chairman and CEO of Graphic Packaging and currently serves on the Fort Dearborn board of directors.

Fort Dearborn president and CEO Kevin Kwilinski said this combination and new investment partnership with CD&R will greatly benefit its customers, suppliers, and employees alike and provide growth opportunities.

“We believe MCC’s global footprint and CD&R’s experience helping industrial companies enhance operational execution and achieve global scale and growth will benefit the combined enterprise. We appreciate Advent International’s partnership over the last five years in helping us drive commercial and supply chain excellence, build scale and reach attractive new end categories,” he said.

“As we enter this next chapter, we look forward to delivering an even greater variety of solutions to our customers throughout the world and enabling opportunities for our employees as part of a larger, more global organisation.”

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