Constantia Flexibles has completed the sale of its labels division, valued at €1.15bn, to the US company Multi-Color Corp., it was announced 31 Oct.
The Austrian packaging company said it had received approximately €830 million for the transaction and that it would "continue to participate in the future success story of Multi-Color through a 16.6% shareholding."
The transaction will bring together the food and beverage business of Constantia Flexibles’ labels division with Multi-Color’s wine & spirit and home & personal care platforms.
The combined annual revenues of the two businesses will be approximately $1.7bn (€1.45bn).
According to Alexander Baumgartner, CEO of Constantia Flexibles, the proceeds will used to deleverage the company’s balance sheet and enable further acquisitions in the flexible packaging industry.
“We will also focus on innovative products and services, as well as new technologies to strengthen our existing food and pharma businesses,” Baumgartner added.