MCC has entered into a binding agreement to acquire 100% ownership of Labelgraphics Holdings for a purchase price of approximately £16.5m less net debt. The purchase price includes a future performance based earn out of approximately 25% of the above total. The acquisition is expected to close on or about 2 April, and is expected to be immediately accretive to earnings for MCC.
Labelgraphics, established in 1983, has annual revenues of approximately £13m and predominantly supplies the United Kingdom (UK) Spirit and Wine markets. Spirits are a mainstay of Scottish exports and their global shipments have exhibited strong growth to developing markets. Wines are increasingly shipped to the UK in bulk and bottled locally, requiring local label supply.
Labelgraphics shares many common multi-national customers with MCC and the same label technologies and suppliers. Labelgraphics’ relocation to a brand new facility and recent additional press capacity in Glasgow provides an opportunity for significant growth.
MCC president and CEO, Nigel Vinecombe, said: “We have had an excellent relationship with Labelgraphics’ owners for many years. Building on the success of Alex Mulvenny, Sr, Alex and Peter Mulvenny and the current Labelgraphics’ team are the leading Wine & Spirit label company in the UK and rank among the best in the world for quality, service and results.
“We are delighted Alex Mulvenny will continue to run Labelgraphics and also be a member of our global Senior Leadership Team, including responsibility for global account management for a number of key customers.”
Source: Multi-Color
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