Publicly-traded Multi-Color Corporation (NASDAQ: LABL) has agreed to be acquired by Platinum Equity at an enterprise value of $2.5 billion. The valuation multiple for this transaction is shown below.
Multi-Color Corporation (MCC) is one of the largest label companies in the world. The company’s labels are used by a range of national and international brands in the home and personal care, wine and spirits, food and beverage, healthcare and specialty consumer sectors. MCC has more than 8,400 employees, 71 label producing operations in 26 countries, and is headquartered in Cincinnati (www.mcclabel.com).For the 12 months ending December 31, 2018, MCC had revenues of $1.7 billion and EBITDA of $272 million. At an enterprise value of $2.5 billion this results in an EBITDA valuation multiple of 9.2x.
“Multi-Color Corporation is an industry leader, with a talented and dedicated team and a reputation for innovative label solutions and best-in-class service,” said Louis Samson, a partner at Platinum Equity. “We have tremendous respect for Multi-Color Corporation, 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 Corporation and WS Packaging Group to strengthen the value proposition for their customers.”
In February 2018, Platinum acquired WS Packaging Group, one of the largest domestic pressure sensitive label manufacturers, from J.W. Childs. WS Packaging’s products are used by more than 10,000 customers in the food, beverage, personal care, household, commercial, promotional, industrial, direct mail, and pharmaceutical markets. The company also manufactures complementary products such as label application equipment and provides services including commercial printing, foil stamping, and promotional packaging. WS Packaging operates 17 manufacturing facilities and is headquartered in Green Bay, WI (www.wspackaging.com).
The buy of MCC will be financed through a combination of equity from Platinum Capital Partners IV LP, a $6.5 billion buyout fund which closed in March 2017, and debt financing from Bank of America Merrill Lynch, and Deutsche Bank.
Platinum Equity invests in a range of industries including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, and telecommunications. The firm has completed more than 250 acquisitions since its founding in 1995 and is headquartered in Beverly Hills (www.platinumequity.com).
Goldman Sachs & Co. is the financial advisor to Multi-Color Corporation.
Closing of this transaction is expected by the end of the third quarter.
© 2019 Private Equity Professional | February 26, 2019