Austrian flexible packaging manufacturer Constantia Flexibles (Vienna; www.cflex.com) has completed the sale of its Labels division to US group Multi-Color Corporation (Batavia, Ohio; www.multicolorcorp.com) for about EUR 1.15 bn – see Plasteurope.com of 20.07.2017. Constantia has received around EUR 830m in cash together with a 16.6% equity stake in Multi-Color.

The deal combines Constantia’s food and beverage business with Multi-Color’s wine & spirit and home & personal care platforms, as well as an emerging global position in healthcare. Annual revenues of the combined business will be approximately USD 1.7 bn.

Alexander Baumgartner, CEO of Constantia Flexibles, said the company will use the proceeds to deleverage its balance sheet and make further acquisitions in the “dynamic and consolidating” flexible packaging industry. He added, “We will also focus on innovative products and services as well as new technologies to strengthen our existing food and pharma businesses.”