Under the terms of the agreement, which has been unanimously approved by Multi-Color's Board of Directors, Multi-Color will be be sold for $2.5 billion including the assumption of $1.5 billion of debt.
“We are pleased to reach this agreement with an affiliate of Platinum Equity,” says Nigel Vinecombe, exec chairman of Multi-Color. “This transaction is the culmination of our Board’s review of strategic alternatives to maximize value for our shareholders. As a result of this process, our Board, with the assistance of independent advisors, unanimously determined that this all-cash transaction will deliver immediate, significant and certain value to our shareholders and is in the best interest of our shareholders and our company. We believe this transaction represents a winning proposition for all of our stakeholders, including our employees.”
Louis Samson, partner-Platinum Equity, adds, “Multi-Color is an industry leader, with a talented and dedicated team and a reputation for innovative label solutions and best-in-class service. We have tremendous respect for Multi-Color, and believe that its capabilities and established position in the industry, when combined with our portfolio company WS Packaging Group, operational expertise and financial resources, will enable Multi-Color and WS Packaging Group to strengthen the value proposition for their customers. With a shared vision to deliver the highest quality label solutions to the world’s most prominent brands, we are excited at the prospect of leveraging our resources to pursue new avenues for growth.”
The deal is expected to be completed by Q3 2019 and is subject to Multi-Color shareholder approval, regulatory clearances and other customary closing conditions.
The Multi-Color Board has unanimously recommended that all of Multi-Color’s shareholders vote to approve and adopt the merger agreement at an upcoming special meeting of Multi-Color ’s shareholders.
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