The 4 largest acquisitions ever in the label industry are unfolding right now. Two acquisitions made by the leading label companies CCL Label and Multi-Color and two by large companies from industries offering alternative decorating technologies Fuji Seal and Constantia Flexibles:
2011: Multi-Color acquired York Label Group to strengthen their position in the Home and Personal Care, Food, Wine and Beverage markets in North America for a price of $356 million in assumed debt, stock and cash for a turnover of $240 million, 12 plants and 1.200 employees.
2012: Fuji Seal bought all shares in Pago Holding AG in Switzerland to strengthen their position as a global supplier of sleeves, labels, flexible packaging and application machinery for a cost of CHF 121 million for a turnover of CHF 180 million, an EBITDA of 3.2 mio and about 900 employees.
2013: Constantia Flexibles Group, headquartered in Vienna, Austria, a leading flexible packaging group, has announced the acquisition of Spear Group focused on labels for the beverage industry. Spear has sales of approximately US$ 195 million with 650 employees located at four facilities in North America, Wales, South Africa and a sales office in Singapore. Spear has also a growing business of re-sealable products primarily for the food and snack markets. Purchase price has not been disclosed.
2013: CCL Industries has announced the acquisition of the office and consumer products, and designed and engineered solutions businesses of Avery Dennison on a debt free basis for US$500 million cash. The two businesses had combined revenues of approximately US$910 million with an estimated adjusted EBITDA of US$110 million in the calendar year of 2012. This acquisition is the largest in CCL’s history and takes the company’s pro-forma annual revenue above $2 billion for the first time.
Both 2013 transactions require regulatory approval. Traditionally label companies were much, much smaller than most of their customers and suppliers. This is now changing with these acquisitions. The merged companies also achieve global foot prints to meet the demands of global brand owners for global sourcing of all relevant decorating technologies. Resources will be available to invest in technology, people and a global supply chain. However, many acquisitions are not successful. The challenge remains to stay customer focused and flexible while successfully integrating these big label companies.
2011: Multi-Color acquired York Label Group to strengthen their position in the Home and Personal Care, Food, Wine and Beverage markets in North America for a price of $356 million in assumed debt, stock and cash for a turnover of $240 million, 12 plants and 1.200 employees.
2012: Fuji Seal bought all shares in Pago Holding AG in Switzerland to strengthen their position as a global supplier of sleeves, labels, flexible packaging and application machinery for a cost of CHF 121 million for a turnover of CHF 180 million, an EBITDA of 3.2 mio and about 900 employees.
2013: Constantia Flexibles Group, headquartered in Vienna, Austria, a leading flexible packaging group, has announced the acquisition of Spear Group focused on labels for the beverage industry. Spear has sales of approximately US$ 195 million with 650 employees located at four facilities in North America, Wales, South Africa and a sales office in Singapore. Spear has also a growing business of re-sealable products primarily for the food and snack markets. Purchase price has not been disclosed.
2013: CCL Industries has announced the acquisition of the office and consumer products, and designed and engineered solutions businesses of Avery Dennison on a debt free basis for US$500 million cash. The two businesses had combined revenues of approximately US$910 million with an estimated adjusted EBITDA of US$110 million in the calendar year of 2012. This acquisition is the largest in CCL’s history and takes the company’s pro-forma annual revenue above $2 billion for the first time.
Both 2013 transactions require regulatory approval. Traditionally label companies were much, much smaller than most of their customers and suppliers. This is now changing with these acquisitions. The merged companies also achieve global foot prints to meet the demands of global brand owners for global sourcing of all relevant decorating technologies. Resources will be available to invest in technology, people and a global supply chain. However, many acquisitions are not successful. The challenge remains to stay customer focused and flexible while successfully integrating these big label companies.
