An affiliate of Beverly Hills-based private equity Platinum Equity has agreed to purchase Multi-Color Corp. in a transaction valued at $2.5 billion, including the assumption of $1.5 billion in debt.
The transaction is expected to be completed by Sept. 30, 2019, and is subject to shareholder approval by Multi-Color, regulatory clearances and other customary closing conditions.
Upon the completion of the transaction, Batavia, Ohio-based Multi-Color, a maker of premium labels, will become a privately held company of Platinum Equity.
The transaction will be financed through a combination of committed equity financing provided by Platinum Capital Partners IV, as well as debt financing committed to by Bank of America Merrill Lynch and Deutsche Bank.
The private equity firm has been on a roll in recent months.
Last December, Platinum Equity completed the acquisition of Jostens Inc. from Newell Brands Inc. in a transaction valued at roughly $1.3 billion. Established in 1897, Jostens was originally founded to repair customers’ keepsake jewelry. The company and the Jostens brand has grown to include products such as yearbooks, publications, class rings and consumer goods. Jostens’ 2017 net sales were $768 million.
Platinum Equity, which is a global investment firm with $13 billion of assets under management and a portfolio of about 40 companies, was founded in 1995 by Tom Gores, who was No. 16 on the Business Journal’s 2018 Wealthiest Angelenos list with an estimated net worth of $4.3 billion.
In 2018, Platinum Equity also acquired Lifescan Inc. from Johnson & Johnson for $2.1 billion, and completed corporate carve outs from Pitney Bowes Inc., GenOn Energy Inc., Ball Corp. and Wyndham Worldwide Corp., among several other investments.
Finance reporter Pat Maio can be reached at email@example.com or (323) 556-8329.
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