Multi-Color Corporation to Acquire Label Specialist
Thursday, July 01, 2010
Press release from the issuing company
CINCINNATI -- Multi-Color Corporation ("MCC") is pleased to announce an important step in the global expansion of its "Collotype" Wine & Spirit Label division with the addition of leading European wine, spirit & olive oil specialist, Guidotti CentroStampa SPA, based in Tuscany, Italy.
MCC has entered into a binding agreement to acquire 100% ownership of the Italian-based company for a purchase price of approximately Euro 50.5 million, with approximately 80% of the proceeds to be paid in the form of cash and 20% in the form of MCC stock at an agreed upon stock price. The acquisition is expected to close on or about July 1, 2010, and is expected to be immediately accretive to earnings for MCC.
Guidotti CentroStampa, established in 1977, has annual revenues of approximately Euro 35 million and supplies not only the Italian market but also the French and Spanish wine markets and the U.K. and Eastern European spirit markets.
MCC President & CEO, Nigel Vinecombe said, "Guidotti CentroStampa is a perfect fit for our specialized Collotype Wine & Spirit Label division. We share the same customer expectations, printing technologies and materials and company culture. We are excited about Andrea Guidotti leading our European wine & spirit operations as President & Managing Director. Andrea and his team have extensive experience and will continue to run the business as normal from their Lucca, Italy base. We recognize the Guidotti family's success in building one of Europe's premier label printers and greatly appreciate their decision to partner with MCC. The Guidotti family will be significant shareholders in MCC."
This acquisition reinforces MCC's commitment to the wine & spirit market as well as being an important entry into the olive oil market. Western Europe represents over half the world's wine production and is a significant producer of spirits and olive oil.
Collotype has successfully established market leadership in wine labels in the U.S., Australia and South Africa; however these markets represent less than 20% of world production. With the addition of Guidotti CentroStampa, MCC will become the only global wine & spirit label specialist with reach into regions with over three quarters of world wine production.
MCC is one of the world's largest label printers, specializing in the home & personal care, food & beverage and wine & spirit markets. Annual revenues are expected to be over USD 300 million with operations on four continents.