The world’s fourth largest producer of flexible packaging has finalised the offloading of its label division to leading label supplier Multi-Color Corporation, while retaining a 16.6% stake
In a statement issued by Constantia Flexibles, the company said it would continue to "participate in the future success story of Multi-Color" through its shareholding.
The transaction brings together the high-performing Food & Beverage business of Constantia Flexibles’ Labels division with Multi-Color’s strong Wine & Spirit and Home & Personal Care platforms, as well as an emerging global position in Healthcare.
The strategic move allows Constantia to refocus on its core business, flexible packaging and pursue growth.The proceeds from the transaction will "enable further acquisitions in the dynamic and consolidating flexible packaging industry", according to the company.
Other points of focus will be on innovation in products, services, as well as new technologies to strengthen Constantia Flexibles' existing Food and Pharma businesses.
For Multi-Color, the acquisition will provide additional growth opportunities in Home and Personal Care through Constantia Labels' European operational footprint and assets, and for Constantia Labels in Food and Beverage through Multi-Color's US operational footprint and assets. The stronger combined footprint in Asia will provide further revenue opportunities.
In a statement from Multi-Color, the company welcomed Constantia's 2,800 associates to the Multi-Color team, as well as Mike Henry, current executive VP and head of Constantia Labels, who becomes CEO-elect of Multi-Color and will be appointed CEO in January 2018.
