Collotype is the world's leading pressure sensitive wine
and spirits label manufacturer with market leadership in Australia,
the United States
and South Africa,
and is a growing provider of labels in the fast-moving consumer goods
marketplace.
Multi-Color, headquartered in the Cincinnati,
Ohio area, is a leading supplier of a broad
range of innovative label solutions to the North American consumer products
marketplace, including in-mold labels (IMLs), heat transfer labels (HTLs),
cut-and-stack and pressure sensitive labels and shrink sleeves.
Multi-Color president and CEO Frank Gerace says,
"This transaction will be a large step towards our strategy of building a
global platform in the consumer labels business, capable of serving premium
brands by leveraging complimentary technologies, innovation, talent and
customer relationships. I am especially pleased to welcome Nigel Vinecombe and
his management team to Multi-Color upon closing of the transaction and look
forward to growing our business together."
Commenting on the deal, Collotype group managing director
Nigel Vinecombe added, "Collotype and Multi-Color are natural partners –
both businesses are recognised for leadership in quality, innovation,
technology and services to our customers. The Collotype management team is
excited about contributing to the growth of the combined group."
Upon completion of the transaction, Nigel Vinecombe will
become president of Multi-Color's International Business Unit. Don Kneir will
continue as president of Multi-Color's North American Business Unit.
The acquisition, to be paid for with a combination of
cash and stock, is expected to be accretive to earnings immediately upon
completion. Financial terms will be disclosed upon the completion of the
transaction, expected within 60 days. The transaction is subject to final
negotiation and execution of a definitive share purchase agreement and
satisfaction of customary closing conditions. Multi-Color expects to draw down
its revolving credit facility to finance the transaction.
Ohio based
Multi-Color Corporation is a premier global resource of innovative decorating
solutions to consumer product and food and beverage companies, national
retailers and container manufacturers worldwide. Multi-Color is one of the
world's largest producers of in-mold labels (IMLs) and heat transfer labels
(HTLs), and a major manufacturer of high-quality cut- and-stack and pressure
sensitive labels and shrink sleeves. Multi-Color has eight manufacturing
locations in the United States. Its products are shipped to more than 650
customers in the United States, Canada, Mexico, and Central and South America.
Forbes magazine has chosen Multi-Color as one of the
Forbes 200 Best Small Companies for 2007. Multi-Color is ranked 86th in this
prestigious group.
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