FMN | July 24th, 2017

An N.V. Publication FLEX

July 24, 2017

Vol. 19 No.15

Market News


Serving The Flexographic Printing Industry In Print and Online at

Multi-Color Buys Constantia Label Division by Greg Kishbaugh M ulti-Color Corporation has signed a definitive agreement to acquire the Labels Division of Constantia Flexibles (Constantia Labels) from Constantia Flexibles GmbH for ap- proximately $1.3 billion, payable in cash and stock. The combined annual revenues and EBITDA of the two busi- nesses will be approximately $1.6 billion and $300 million, re- spectively. The combination brings together Constantia Labels’ Food and Beverage business with Multi-Color’s Wine and Spirit, and Home and Personal Care platforms, in addition to Healthcare. Additional growth opportunities for Multi-Color exist in Home and Personal Care by utilizing Constantia Labels’ European opera- tional footprint and assets. Growth op- portunities for Con- stantia Labels exist in Food & Beverage and derive from Multi-Color’s U.S. operational footprint and assets. “The acquisition of Constantia Labels marks a major milestone in the evolution of Multi-Color,” said Nigel Vinecombe, Executive Chairman of Multi-Color.“We are bringing together complemen- tary talents in markets and geographies, diversifying our business and creating a global leader with a transaction that is financially attractive,which will better help us serve our customers.” Cost synergies are anticipated to reach $15 million (or 2 per- cent of acquired revenues) by Fiscal Year March 2020 through a combination of procurement, Selling, General and Administra- tive Expenses, and manufacturing efficiencies. As an example, Multi-Color will utilize Constantia Labels pressure sensitive substrate manufacturing capability in the United States

FDA Delays Nutrition Facts Relaunch The US Food and Drug Administra- tion (FDA) has announced that the launch of an updated “nutr ition facts” panel on foods, developed dur- ing the Obama administration, will now be delayed. The deadline for which the food in- dustry must comply with the new la- beling will be pushed back for an undisclosed time, the Associated Press reported. The new nutrition panel was de- signed to make it easier for con- sumers to see how many calories and added sugars a product contained. Specifically, the revamped label would make information on calorie counts more prominent, make serving sizes easier to understand, and point to the amount of added sugars a food or drink contains. Current labels only cite amounts of total sugar in a prod- uct, which might include naturally oc- curring sugars, the AP said. The original FDA deadline for com- pliance was July 26, 2018.The Grocery Manufacturers Association (GMA) and other food industry groups had asked for an extension to 2021.

For exclusive content and breaking news please visit

(Cont’d on Page 12)

Made with FlippingBook Annual report