Reuters logo
9 days ago
Multi-Color to buy labels unit of Constantia for $1.3 billion
July 17, 2017 / 1:40 PM / 9 days ago

Multi-Color to buy labels unit of Constantia for $1.3 billion

2 Min Read

(Reuters) - U.S.-based packaging group Multi-Color Corp (LABL.O) said it would buy the labels unit of Constantia Flexibles GmbH IPO-COFH.VI for about $1.3 billion in cash and stock.

Constantia Flexibles will own about 16.6 percent of Multi-Color after the deal closes in the third fiscal quarter of 2018, the companies said on Monday.

Multi-Color said it would issue the stock at $75 per share. The company's shares were down 5.9 percent at $77.70 in light premarket trading.

Mike Henry, head of the Germany based Constantia Labels, is expected to become CEO-elect of Multi-Color, the companies said.

Reuters had reported on Friday about a possible deal for the unit, citing sources.

Buyout group Wendel (MWDP.PA), which owns 60 percent of Constantia Flexibles, as well as its co-investors are considering using proceeds from a sale of the labels group to fund add-on acquisitions for the remainder of the company, sources told Reuters.

Multi-Color said on Monday it expected the deal to meaningfully add to core earnings in its fiscal year ending March 2019.

Reporting by Supantha Mukherjee in Bengaluru; Editing by Sriraj Kalluvila

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below