Private investment firm Clayton, Dubilier & Rice (CD&R) is to acquire Fort Dearborn from Advent International and Multi-Color Corporation (MCC) from Platinum Equity, and merge them to create the world’s largest label company.
Fort Dearborn operates 20 locations across the US, offering a comprehensive suite of label options to meet its customers’ dynamic packaging needs and business objectives. Also based in the US, MCC is a global business, serving national and international brand owners in North, Central and South America, Europe, Africa, China, Southeast Asia, Australia and New Zealand.
The combination of Fort Dearborn and MCC will create a diversified platform across label technologies – including a large and enhanced digital printing capability – end categories, geographies and customers. It will serve a diverse mix of customers active in a number of end categories, including wine and spirits, food and beverage, beer, and home and personal care. The combined company is expected to generate approximately $3 billion of annual revenue.
MCC CEO Nigel Vinecombe explained, ‘At MCC, we have continually worked to invest in our people, processes and technology in order to strengthen our organisation 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.’
Kevin Kwilinski, president and CEO at 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. We appreciate Advent International’s partnership over the last five years in helping us drive commercial and supply chain excellence, build scale and reach attractive new end categories. As we enter this next chapter, we look forward to delivering an even greater variety of solutions to our customers throughout the world and enabling opportunities for our employees as part of a larger, more global organisation.’
CD&R is a private investment firm with a strategy predicated on building stronger, more profitable businesses. Since inception, CD&R has managed the investment of more than $35 billion in 100 companies with an aggregate transaction value of more than $150 billion. For this deal, CD&R funds are acquiring Fort Dearborn and MCC from global private equity investors Advent International and Platinum Equity, respectively.
CD&R CEO Nate Sleeper commented, ‘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.’
Mr Sleeper’s colleague Robert Volpe, CD&R principal, added, ‘We are excited to help strengthen a global prime label business through this combination,. We believe that the combined company will have a scaled global platform across end categories and geographies, innovative label technologies, favourable growth prospects, and a deep set of capabilities to serve customers all over the world.’
The acquisitions and merger are subject to customary closing conditions and are expected to be completed by the end of 2021. David Scheible, operating advisor to the CD&R funds will serve as chairman of the combined company. Mr Scheible is the former chairman and CEO of Graphic Packaging International, and currently serves on the Fort Dearborn board of directors.
