Several local label companies look set to come under US ownership. US-based Multi-Color Corporation will acquire label holding company Hexagon. The companies have signed a binding sale and purchase agreement which will see Multi-Color Corporation acquire all Hexagon shares.
The acquisition includes several local label companies. These are Hexagon subsidiaries Hally Labels, Label Partners, Adhesif Labels, Kiwi Labels, and Rapid Labels. The transaction will complete when the parties confirm Australian and New Zealand foreign investment regulatory approvals.
Australasian network created
Nigel Vinecombe, chief executive at Multi-Color Corporation, looks forward to completing the deal. He says, “Bringing these companies together creates an impressive Australasian network. Most importantly, we will see clear market leadership in the region. Therefore, we are delighted to be welcoming Hexagon’s staff, clients and suppliers to the Multi-Color Corporation family.”
Clark Perkins, chairman of Hexagon Holdings, agrees. He says, “Firstly, we are proud to have established Hexagon and built its operations over the past eight years. It is now the leading manufacturer of self-adhesive labels in Australasia. The MCC and Hexagon businesses are highly complementary. Therefore, we can see many opportunities for the combined business in the Australian and New Zealand markets. Moreover, this announcement is the culmination of the efforts of all our employees throughout our ownership. In short, we feel deeply grateful for their efforts.”
The companies add that all existing arrangements with Hexagon employees, clients and suppliers will continue seamlessly. This is because the acquisition is by way of a share sale.
Daren Hudson, Multi-Color Corporation president for Australia and New Zealand will lead its enlarged Australasian group. In addition, Greg Howell, chief executive at Hexagon will assist during an agreed transitional period.
The companies thank the advisors who have assisted with this transaction. For Multi-Color Corporation those include Ernst & Young and Minter Ellison. Further, for Hexagon, they are Goldman Sachs, Deloitte and HHL.
Global label solutions provider Multi-Color Corporation employs approximately 10,000 employees across 86 plants in 26 countries. Established in 1916, it supports several prominent brands. These include home and personal care, wine and spirits, food and beverage, healthcare, and specialty consumer products. It serves brand owners in North, Central and South America, Europe, Africa, China, Southeast Asia, Australia and New Zealand. Its label technologies include pressure sensitive, IML, shrink sleeve, wraps, cut and stack, heat transfer, durables and aluminium foils.
Hexagon, the holding company for several specialist narrow web label converters in Australia and New Zealand, employs 510 staff. Hexagon subsidiaries operate from eight manufacturing sites in Adelaide, Auckland, Brisbane, Christchurch, and Sydney. Privately owned, its majority shareholder Mercury Capital is in discussions with Multi-Color Corporation