MCC acquires UK spirit and wine label specialist
Multi-Color Corporation (MCC) has announced a major step in its global expansion with the acquisition of Labelgraphics based in Glasgow, Scotland. MCC has entered into a binding agreement to acquire 100 percent ownership of Labelgraphics Holdings for a purchase price of approximately £16.5 million less net debt. The purchase price includes a future performance based earn out of approximately 25 percent of the above total. The acquisition is expected to close on or about April 2, 2012, and is expected to be immediately accretive to earnings for MCC.
Labelgraphics, established in 1983, has annual revenues of approximately £13 million and predominantly supplies the United Kingdom (UK) spirit and wine markets. Spirits are a mainstay of Scottish exports and their global shipments have exhibited strong growth to developing markets. Wines are increasingly shipped to the UK in bulk and bottled locally, requiring local label supply. Labelgraphics shares many common multi-national customers with MCC and the same label technologies and suppliers. Labelgraphics' relocation to a brand new facility and recent additional press capacity in Glasgow provides an opportunity for significant growth.
From Internet
22 April, 2012
