Tuesday February 26, 2019

Multi-Color Corporation-Fulton Operation Being Sold

Platinum Equity LLC purchasing major label company
By Lou Sorendo



    Los Angeles-based private equity firm Platinum Equity LLC is acquiring Multi-Color Corp. (Nasdaq: LABL), one of the largest label companies in the world.

     

    Multi-Color Corp. services some of the most prominent brands in the following market segments: health care, high-performance computing, food and beverage, specialty (automotive and consumer durables), and wine and spirits.

     

    Multi-Color Corp. has a location in Fulton that employs 46 people. In 2018, the Fulton operation continued supply of labels for its two largest orange juice customers, transitioning nearly 200 items with new graphics.

     

    Multi-Color is the fifth printing company to occupy the plant that originally opened in 1871 as the Morrill Press. The plant was sold to Sonoco Flexible Packaging during the 1990s and operated under that banner until December of 2003 when the company closed the Fulton plant.

     

    Spear inherited Sonoco machinery and the workforce was educated on the latest pressure-sensitive technologies. Constantia Flexibles Group, headquartered in Vienna, Austria, acquired Spear in April of 2013. In November of 2017, Multi-Color completed the purchase of 23 of Constantia’s label operations, including Fulton’s.

     

    The deal is valued at $2.5 billion including the assumption of $1.5 billion of debt. Multi-Color shareholders will receive $50 in cash for each share of stock that they own as a result of the agreement.

     

    The announcement comes after Multi-Color’s stock plummeted 15 percent to $43.28 per share earlier this month following its quarterly earnings report that missed estimates. The company’s board said then that it was considering “strategic alternatives” for the company.

     

    Multi-Color stock closed up 2.27 percent, or $1.10, at $49.65 on Monday.

     

    Multi-Color’s assets and employees are expected to be a strong fit for Platinum Equity LLC’s WS Packaging Group, according to reports.

     

    Platinum Equity has acquired more than 250 companies since it was founded in 1995.

     

    The sale is expected to be complete in the third quarter and is subject to Multi-Color shareholder approval, regulatory clearances and other conditions.