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Collotype Labels retains identity in $210 million US takeover

Wednesday, 26 March 2008
By Print21

Multi-Color buys iconic Australian label converter but leaves local management in place to operate the international business.

The Collotype wine labels business in Australia will continue to operate under its well-known identity. The non-wine manufacturing plants of Colourcraft and Nationwide Labels will be re-branded as Multi-Color (SA) and (QLD) respectively.

The Ohio-based Multi-Color closed the acquisition this week of the Adelaide-based company that in almost 100 years has grown to become the world’s largest pressure sensitive wine label producer. Nigel Vinecombe, Collotype ceo, will take on the role of president of Multi-Color’s international business unit. Collotype shareholders and management team got almost 30 per cent of their takeover payment in Multi-Color stock, which means the Australian interests retain a significant stake in the enlarged company.

Founded in 1903 Collotype has US$130 million in annual sales and is one of the most awarded label converters in the industry. Under the guidance of entrepreneur, Peter Teakle, it grew rapidly over eight years from a $50 million concern to its present size.

In the States, Multi-Color president and CEO, Frank Gerace said, “This acquisition is the first large step towards achieving our long range strategy of being a premier global resource of innovative label solutions to consumer product and food and beverage companies worldwide. We look forward to Nigel Vinecombe and the Collotype team becoming a vital component of Multi-Color’s continued success.”

The takeover is part of the ongoing consolidation sweeping the label converting industry. According to Brenton Barrett, vice president Multi-Color Asia/Pacific, the trend is undeniable and he says although the company is not talking to anyone at present there is likely to be further takeover activity down the track.

He described the Multi-Color deal as a significant event in the label converting sector. “It’s a good marriage. We share a passion for excellence and it gives our people greater job security with the opportunity to grow the company,” he said.

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