CD&R to buy label manufacturers Multi-Color Corporation and Fort Dearborn

Clayton, Dubilier & Rice (CD&R) has signed two separate deals to acquire Multi-Color Corporation (MCC) and Fort Dearborn and merge them subsequently to create a global scale label manufacturer.

The private investment firm will acquire Multi-Color Corporation, an Ohio-based label solutions provider, from Platinum Equity for an undisclosed price.

On the other hand, CD&R will acquire Fort Dearborn, a US-based label and packaging solutions provider, from Advent International. The financial terms of this deal were also not disclosed.

Nigel Vinecombe – CEO of Multi-Color Corporation said: “At MCC, 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.

“This combination with Fort Dearborn and the ongoing support of value-added investors provide the opportunity to continue to strengthen the business, invest in the expansion of our global footprint, and provide best-in class service to our customers.”

Platinum Equity to sell Multi-Color Corporation to Clayton, Dubilier & Rice. Photo courtesy of Platinum Equity.

According to CD&R, the combination of Fort Dearborn and Multi-Color Corporation will result in a diversified platform across label technologies, end categories, customers, and geographies. It will cater to a diverse mix of customers engaged in various end categories such as wine and spirits, beer, food and beverage, and home and personal care.

Nate Sleeper – CD&R CEO said: “We see strong strategic logic and promising value creation potential in bringing these two leading label manufacturers together.

“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.”

The combined label manufacturer is estimated to earn around $3 billion of annual revenue.

David Scheible, who is currently Operating Advisor to CD&R funds, will be the chairman of the combined company.

The acquisitions and the subsequent merger, which are subject to meeting of customary closing conditions, are anticipated to be wrapped up by the year end.

Kevin Kwilinski – President and CEO of Fort Dearborn said: “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.

“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.”