Multi-Color To Purchase Decorating Technologies Division of Avery Dennison
Press release from the issuing company
CINCINNATI, Nov. 19 -- Multi-Color Corporation announced it has signed a definitive agreement to purchase the North and South American Decorating Technologies Division of Avery Dennison Corporation. Avery Dennison's Dec Tech division, the pioneer of Heat Transfer Label technology ("HTL"), is a $20 million supplier of heat transfer labels in North and South America to the health & beauty aids, beverage and food industries.
"I am extremely excited to add Dec Tech and its internationally-known heat transfer technology to our portfolio of decorating solutions and packaging services," said Frank Gerace, President and Chief Executive Officer of Multi- Color Corporation. "With this acquisition, Multi-Color now stands as the world's leading provider of both in-mold and heat transfer labels. Combined with our growing leadership in the pressure sensitive and shrink sleeve categories we are now a comprehensive business resource to our consumer products, food and beverage customers."
With approximately 40% of its sales outside the United States, Dec Tech expands Multi-Color's sales base in Latin and South America. Dec Tech's 120,000 sq. ft. facility in Framingham, Massachusetts adds narrow web gravure printing capability to Multi-Color's wide web gravure, flexographic and lithographic printing platforms.
"We look forward to welcoming Dec Tech's highly skilled and dedicated employees to the Multi-Color family," said Gerace.
Multi-Color will also take ownership of all North and South American patents and trademarks related to the Dec Tech business, including Clear ADvantage(TM) the world's # 1 brand of "no-label look" heat transfer labels. Dec Tech has received numerous industry awards for innovation and graphic excellence.
The Dec Tech purchase is expected to close before the end of December 2002 and is projected to be accretive to earnings in fiscal year 2003 ending March 31, 2003. Once completed, this becomes Multi-Color's third acquisition during the most recent 12 months. In June 2002, Multi-Color purchased Cincinnati, Ohio-based Quick Pak, Inc., a leading provider of promotional packaging, assembly and fulfillment services, and in October 2001, it acquired Troy, Ohio-based Premiere Labels, Inc., an award-winning producer of pressure sensitive labels.
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