Clayton, Dubilier & Rice (CD&R) is assembling a label-making giant with the buys of Fort Dearborn Company from Advent International and Multi-Color Corporation from Platinum Equity.
Fort Dearborn is a supplier of labels for the beverage, food, household products, paint and coatings, personal care, wine, and spirits markets. The company provides cut and stack, pressure-sensitive, roll-fed, and shrink-sleeve labels across multiple print technologies including digital, flexographic, offset lithographic, and rotogravure.
Fort Dearborn, led by CEO Kevin Kwilinski, is headquartered in the Chicago suburb of Elk Grove and operates out of 20 locations across the United States (18) and Canada (2). Advent International acquired Fort Dearborn from KRG Capital Partners in August 2016.
“We believe the growth opportunities that this combination and new investment partnership with CD&R present will greatly benefit our customers, suppliers, and employees alike,” said Mr. Kwilinski. “We believe MCC’s global footprint and CD&R’s experience helping industrial companies enhance operational execution and achieve global scale and growth will benefit the combined enterprise.”
Multi-Color manufacturers various types of labels for the beverage, wine and spirits, food and dairy, personal care, home care and laundry, healthcare, automotive, and chemicals industries. The company operates 80 label production facilities across 27 countries and employs over 9,000 people. Multi-Color, led by CEO Nigel Vinecombe, is headquartered east of Cincinnati in Batavia, Ohio.
Platinum Equity took publicly-traded Multi-Color private in July 2019 at an enterprise value of $2.5 billion. At the time of this transaction, Multicolor had annual revenues of $1.7 billion and EBITDA of $272 million, resulting in an EBITDA valuation multiple of 9.2x.
“At Multi-Color, we have continually worked to invest in our people, processes and technology in order to strengthen our organization and become one of the most trusted and innovative label manufacturing leaders across the globe,” said Mr. Vinecombe. “Platinum’s financial and operational support have been instrumental to our success. This combination with Fort Dearborn and the ongoing support of value-added investors provide the opportunity to continue to strengthen the business and provide best-in-class service to our customers.”
At the closing of this transaction, David Scheible, an operating advisor to CD&R and current member of Fort Dearborn’s board of directors, will lead the combined company as its chairman.
“We see strong strategic logic and promising value creation potential in bringing these two leading label manufacturers together,” said Nate Sleeper, CEO of CD&R. “We look forward to working with the combined company’s leadership team to help drive innovation and enhance its offering to a highly discerning customer base around the world. We see numerous opportunities to drive operational scale, achieve sustained growth, and we believe our expertise can help position the combined company for success well into the future.”
New York and London-based CD&R invests in European and United States-based businesses. Since its founding in 1978, the firm has invested more than $35 billion in over 100 companies across a range of industries including consumer, retail, healthcare, industrial, technology and business services.
Advent International invests in companies active in business and financial services; healthcare; industrial; retail, consumer, and leisure; and technology, media and telecom. The firm has 14 offices in 11 countries and employs 240 investment professionals across North America, Europe, Latin America, and Asia. Founded in 1984 and headquartered in Boston, Advent has $74 billion in assets under management and has completed more than 375 private equity transactions.
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 is currently investing from Platinum Equity Capital Partners V LP, a $10 billion buyout fund, and Platinum Equity Small Cap Fund LP, a $1.5 billion buyout fund focused on the lower middle market. Platinum was formed in 1995 by Tom Gores and is headquartered in Beverly Hills.
© 2021 Private Equity Professional | July 16, 2021
BlueHalo, a portfolio company of Arlington Capital Partners, has agreed to acquire Design & Development Engineering Service Corporation (DDES).
“DDES has established itself as a leader in developing space-qualified hardware and we are incredibly excited to partner with the DDES management team as we expand our space manufacturing capabilities and continue to provide unique, world-class solutions for our customers,” said Mr. Moneymaker. “BlueHalo is leading the transformation of modern warfare and the acquisition of DDES is an important addition to BlueHalo as we continue to grow organically into new mission areas.”
“The acquisition of DDES will build upon BlueHalo’s exceptional space capabilities and further expand the company’s presence in Albuquerque, one of BlueHalo’s core locations and a great community in which we are looking to invest further,” said David Wodlinger, a partner at Arlington Capital. “BlueHalo continues to make significant investments in engineering talent and specialized facilities in order to better serve important missions in space, and we are delighted to have DDES join the team.”
Chevy Chase, Maryland-based Arlington Capital was founded in 1999 and has completed over 90 acquisitions since its inception. Sectors of interest include government-regulated industries and adjacent markets including aerospace and defense; government services; and technology, healthcare, and business services.
Publicly traded nVent Electric has acquired electro-mechanical products manufacturer CIS Global from Guardian Capital Partners for approximately $200 million.
“During Guardian’s ownership, the company invested to expand beyond its server rack slides offering to include intelligent power distribution unit capabilities, becoming the largest independent provider of server rack power distribution units globally,” said Scott Evans, a managing partner at Guardian. “The company is well-positioned to meet the increasing demand for data center products and solutions.”
nVent (NYSE: NVT) designs, manufactures, markets, installs, and services electrical connection and protection products. The company serves a variety of industries including commercial, residential, energy, industrial, and infrastructure. Founded in 1903, nVent is headquartered in Minneapolis and London and employs just under 9,000 people across North America, South America, Europe, and Asia.
Rothschild & Co has added Timothy Lufkin to its investment banking team as a managing director in its financial sponsors group.
“Rothschild & Co has built an impressive platform globally and established a strong and growing business in the United States,” said Mr. Lufkin. “I am excited to cultivate and deepen the firm’s distinct and diverse client base in North America and further expand the financial sponsors franchise by advancing and broadening the firm’s relationships in the private equity industry.”