As part of its global expansion, Ohio-based Multi-Color Corporation (MCC) has announced the acquisition of Labelgraphics, the UK spirit and wine label specialist.
MCC has entered into a binding agreement to acquire 100% 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% 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.
Based in Glasgow, Scotland, Labelgraphics was established in 1983 and has annual revenues of approximately £13 million. It predominantly supplies the UK spirit and wine markets. Spirits are a mainstay of Scottish exports and 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. The Scottish label printer shares many common multi-national customers with MCC and the same label technologies and suppliers. Its relocation to a brand new facility and recent additional press capacity in Glasgow provides an opportunity for significant growth.
MCC president and chief executive officer, Nigel Vinecombe, said, ‘We have had an excellent relationship with the owners of Labelgraphics for many years. Building on the success of Alex Mulvenny, Sr, Alex and Peter Mulvenny and the current team are the leading wine and spirit label company in the UK and rank among the best in the world for quality, service and results. We are delighted Alex Mulvenny will continue to run the company and also be a member of our global senior leadership team, including responsibility for global account management for a number of key customers.’
Alex Mulvenny, managing director, stated, ‘The Labelgraphics’ senior management team looks forward to being part of MCC, including being part of the global leader in wine and spirit labels. We continue to make a long term commitment to our Scottish operation and our integration into the MCC group.’
This acquisition reinforces MCC’s commitment to the wine and spirit markets and is seen by the corporation as an important component of its plans for significant coverage of the large European wine and spirit markets. Labelgraphics will be part of the current European group, which has operations in Italy, France and Poland reporting to European president, Andrea Guidotti.
