Binder Grösswang Advises on Sale of Labels Division of Constantia Flexibles Group
Binder Grösswang, in cooperation with Willkie Farr & Gallagher, advised the Constantia Flexibles group on the carve-out and sale of its labels division to the US-based strategist and global player Multi-Color Corporation (“Multi-Color”).
Constantia Labels is a global supplier of labels to the beverage, food, household and personal care industries. This business segment of Constantia Flexibles, which has long-standing customer relationships with leading brands, encompasses 23 plants in 14 countries and a total staff of some 2,800 persons. In 2016, the labels division achieved sales of EUR 605 million.
The sale price of EUR 1.15 billion will be paid partly in cash and partly in shares in the American buyer Multi-Color. The signing took place on 16 July 2017 in Frankfurt and the transaction is expected to be closed in the fourth quarter of 2017, subject to regulatory approvals.
At the closing of the transaction, Constantia Flexibles will receive 16.6% of the outstanding shares in Multi-Color, thereby becoming its largest shareholder.
The Constantia Flexibles group, headquartered in Vienna, was founded by Herbert Turnauer in the 1960s and produces flexible packaging and labels, primarily for the food, pet food, pharmaceuticals and beverage industries. The company has expanded within and outside of Europe, and in the last five years has established itself as one of the world’s leading producers of packaging solutions. The Constantia Flexibles group has over 3,000 customers worldwide and more than 8,000 employees working at 43 locations in 18 countries. Its products are sold in more than 115 countries.
The Binder Grösswang team, led by partner Thomas Schirmer (Corporate/M&A) included Claudia Fochtmann (attorney, Corporate/M&A), the partners Christian Wimpissinger (Tax), Ivo Rungg (IP) and Johannes Barbist (Regulatory/Environment), Hellmut Buchroithner (counsel, IP/Commercial), Clemens Willvonseder (attorney, Tax) and Cordelia Klauhs (associate, Corporate/M&A).
The transaction team of Willkie Farr & Gallagher LLP was composed of lawyers from the Willkie offices in Frankfurt, Paris, London, Brussels and New York, and was led by Mario Schmidt.