Multi-Color Corp to Buy Collotype International
SHARONVILLE, OH—Jan. 21, 2008—Multi-Color Corporation today announced it has signed a binding agreement to acquire Collotype International Holdings Pty. Ltd. (“Collotype”) for approximately $175 million plus an additional $10 million upon achieving certain financial targets. This follows the announcement of a Letter of Intent between the parties dated November 5, 2007.
Collotype, with over $130 million in annual sales, is the world’s leading pressure sensitive wine and spirits label manufacturer and a growing provider of labels in the fast-moving consumer goods marketplace in Australia. Collotype is based in Australia, and has operations in Australia, South Africa and the United States. Collotype is known for its innovation and high quality in the wine and spirits market. Collotype produces labels for eight of the top fifteen global wine brands and its major customers include Diageo, Pernod Ricard, Constellation, Foster’s, Gallo, The Wine Group, Bronco, Trinchero, Distell and KWV.
Collotype shareholders and management team will receive almost 30% of their total proceeds in Multi-Color stock. The acquisition is expected to close on or about January 31, 2008 and be accretive to earnings immediately upon completion.
Multi-Color President and CEO Frank Gerace said, “This acquisition is the first large step towards achieving our long range strategy of being a premier global resource of innovative label solutions to consumer product and food and beverage companies worldwide. We look forward to Nigel Vinecombe and the Collotype team becoming a vital component of Multi-Color’s continued success.”
Collotype’s commanding presence in the global wine and spirits market compliments Multi-Color’s leadership in the consumer products market and significantly expands its customer base.
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.