Multi-Color Corporation To Sell Packaging Services Division, Quick Pak
Tuesday, June 19, 2007
Press release from the issuing company
CINCINNATI, June 18 -- Multi-Color Corporation and NFI Industries, Inc., a New Jersey corporation, announced today that they have entered into a definitive agreement which provides for the acquisition of Multi-Color's Packaging Services Division -- Quick Pak by NFI Industries, Inc. for $19.2 million. Quick Pak is a leading provider of high volume promotional, packaging, custom assembly, and turnkey project management for major health and beauty brands, consumer product manufacturers and national retailers. Quick Pak employs approximately 100 associates at its manufacturing facility in Sharonville, Ohio, a suburb of Cincinnati. The transaction is expected to close in early July and is subject to normal and customary conditions of closing. Also, in connection with the transaction, Multi-Color and NFI will enter into a joint marketing agreement which allows for the cross-selling of the parties' products and services.
Multi-Color President and CEO Frank Gerace said, "We thank our associates at Quick Pak for their years of dedication to Multi-Color, their commitment to excellence and their exceptional award winning service to our customers. We are very pleased to have reached an agreement with a highly regarded company like NFI Industries which will continue to build the Quick Pak business. This transaction allows Multi-Color to focus on our core label business where many strategic opportunities exist, including emerging print technologies and domestic and international acquisitions. In fact, we are presently in the process of reviewing and analyzing several targets. As a result of our recent $100 million Revolving Loan Agreement and the proceeds from the sale of Quick Pak, we are positioned to acquire significant assets to continue to build a global label company for the fast-moving consumer goods marketplace."
Joe Roeder, President of NFI said, "NFI Industries does not anticipate significant changes in Quick Pak's operations." NFI Industries' senior management will visit Quick Pak this week to meet with all employees. "We are very eager to introduce NFI Industries to our new associates at Quick Pak, and are excited to tell them about the potential of the combined businesses," Roeder added. "We expect Quick Pak will become a very important contributor to the success of NFI Industries going forward."
BMO Capital Markets acted as exclusive financial advisor to Multi-Color in this transaction.