Multi-Color expands position in personal care labeling
York label has manufacturing bases in both the North American and Chile markets and is also present in the labeling markets for food and beverage as well as wine and spirits.
Multi-Color has agreed to pay $356m as a combination of Multi-Color shares stock and cash, with an agreed closing date of October 3, 2011. The acquisition is expected to be accretive in the fiscal year ending March 2013.
Multi-Color carves out dominant position
Combined, the two companies will have revenues of $640m, and the deal will help build on Multi-Color’s position as the largest label company in the US, as well as claiming to be the fastest growing company in this sector, with revenues tripling since 2008.
York Label had revenues of approximately $240m in 2010, which included income from its joint venture in Chile, which will also be acquired as a whole business as part of the deal.
The majority of York’s manufacturing is concentrated on the growth area of pressure sensitive labels for personal care, together with the food and beverage markets. with supply concentrated to blue chip and multi-national businesses.
Vinecombe will be CEO of new expanded business
The companies have confirmed that Nigel Vinecombe will continue in has role of president and chief executive officer of Multi-Color, with the position to be extended to overseeing the newly acquired business as well.
"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,” said Vinecombe.
“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."
