Multi-Color To Acquire York Label Group

CINCINNATI, Ohio—Multi-Color Corporation announced that it has agreed to acquire 100 percent ownership of York Label Group to strengthen Multi-Color’s leadership in the home and personal care, food and beverage, and wine and spirit label markets in North America and Chile.

The combined Company is expected to have annual revenues of approximately $640 million at closing. This makes Multi-Color Corporation the largest label company in the U.S. and the fastest growing globally with revenues more than tripling since the beginning of 2008.

The approximate purchase price for York Label Group is $356 million, payable in debt assumed, Multi-Color stock, and cash. The acquisition is expected to be accretive in fiscal year ended March 2013. Closing is expected on or about October 3, 2011.

York Label Group (owned by Adhesion Holdings Inc.), is headquartered in Omaha, Nebraska and is privately held by Diamond Castle Holdings. York Label Group revenues for 2010 were approximately $240 million, including 100 percent of their joint venture in Chile, which is also being fully acquired as part of this transaction. The majority of York’s revenues are in the growth pressure-sensitive label markets for home and personal care, food and beverage, and wine and spirit, and healthcare through long-standing relationships with blue chip national and multi-national customers. York has 12 plants across the U.S., Canada, and Chile with approximately 1,200 employees.

Nigel Vinecombe, Multi-Color Corporation president and chief executive officer will continue as president and chief executive officer of the combined company. Diamond Castle representatives, Ari Benacerraf and Lee Wright will join the Multi-Color Board of Directors upon closing of this transaction.

Commenting on the acquisition, Vinecombe said, “Our customers will benefit from increased product offerings, greater flexibility and contingency, more investments in technology, increased access to innovation, and greater consistency in quality and service as we take the best resources from both businesses and create higher overall performance standards. The strong strategic fit extends to common technology platforms and raw materials. It also brings further diversity to our customer base and the opportunity to grow with a broader range of customers.”

Vinecombe added, “We are committed to adding value to our shareholders and have very experienced management teams in the label industry with successful track records in effective integration, and York Label Group is in many ways a replica group of businesses for Multi-Color. This acquisition comes at a time when our existing businesses are performing well and ready for this natural progression. We continue to apply a consistent strategy of investing in consumer product staples, with in this case strong synergy benefits.”

Multi-Color Corporation has secured financing with a revised five-year $500 million credit facility, plus $100 million accordion that provides room for future acquisitions.