Multi-Color signs agreement to acquire Collotype International
Published:23-January-2008
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Multi-Color, a provider of decorative label solutions and packaging services, has signed an agreement to acquire wine company Collotype International Holdings for approximately US$175 million plus an additional $10 million upon achieving certain financial targets.
The 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.
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.
Simultaneous to the closing of the transaction, Multi-Color will execute a five-year $200 million credit facility with an option to increase the facility up to an additional $50 million subject to terms of the loan documents. The facility is with Bank of America and a syndicate of seven other lenders. This facility gives Multi-Color the capacity to make further acquisitions and capital investments.
Frank Gerace, president and CEO of Multi-Color, 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."
