FMN | July 24th, 2017

An N.V. Publication FLEX

July 24, 2017

Vol. 19 No.15

Market News

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Serving The Flexographic Printing Industry In Print and Online at www.nvpublications.com

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.

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