The holding company for a number of specialist narrow-web label converters in Australia and New Zealand, Hexagon Holdings, has inked a binding Sale and Purchase Agreement whereby global label solutions provider Multi-Color Corporation (MCC) will acquire its businesses.
The acquisition includes Hexagon subsidiaries Hally Labels Australia, Label Partners Australia, Adhesif Labels New Zealand, Hally Labels New Zealand, Kiwi Labels New Zealand and Rapid Labels New Zealand for an undisclosed sum.
Hexagon subsidiaries employ 510 staff and operate from eight manufacturing sites including Adelaide, Auckland, Brisbane, Christchurch and Sydney.
The transaction is expected to be complete in Q3 this year, when FIRB (in Australia) and OIO (in New Zealand) foreign investment regulatory approvals have been confirmed.
Following the completion of the acquisition, MCC’s enlarged Australasian group will be led by Daren Hudson, MCC president for Australia and New Zealand. Hexagon CEO Greg Howell will assist across an agreed transitional period.
MCC CEO Nigel Vinecombe said, “Bringing these companies together creates an impressive Australasian network and clear market leadership in the region. We are delighted to be welcoming Hexagon’s staff, clients and suppliers to the MCC family.”
Hexagon Holdings chairman Clark Perkins said the MCC and Hexagon businesses are highly complementary.
“We are proud to have established Hexagon and built its operations over the past eight years to be the leading manufacturer of self-adhesive labels in Australasia. We can see many opportunities for the combined business in the Australian and New Zealand markets. The announcement is the culmination of the efforts of all of our employees throughout our ownership and we are deeply grateful for their efforts,” he said.
Because the acquisition is by way of a share sale, MCC also confirmed that all existing arrangements with Hexagon employees, clients and suppliers will continue seamlessly.
MCC has been making inroads into the A/NZ labels space, having also recently acquired Melbourne-based Herrods, a provider of in-mould label (IML) solutions in Australia and New Zealand, for an undisclosed sum.