Clayton Dubilier & Rice (“CD&R”) has announced a definitive agreement under which CD&R will acquire and combine Fort Dearborn and Multi-Color Corporation (MCC) to create the world’s largest label solutions company serving customers worldwide. CD&R is acquiring Fort Dearborn and MCC from global private equity investors Advent International and Platinum Equity, respectively.

Terms of the transaction were not disclosed.

“We see strong strategic logic and promising value creation potential in bringing these two leading label manufacturers together,” says Nate Sleeper, CD&R chief executive officer. “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.”

The combination of Fort Dearborn and MCC will create a diversified platform across label technologies, 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.

David Scheible, operating advisor to CD&R, will serve as chairman of the combined company. Scheible is the former chairman and CEO of Graphic Packaging and currently serves on the Fort Dearborn Board of Directors.

“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,” says Kevin Kwilinski, president and CEO of Fort Dearborn. “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 organization.”

“At MCC, we have continually worked to invest in our people, processes and technology in order to strengthen our organization and become one of the most trusted and innovative label manufacturing leaders across the globe,” states Nigel Vinecombe, CEO of MCC. “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.”

“We are excited to help strengthen a global prime label business through this combination,” comments Robert Volpe, CD&R principal. “We believe that the combined company will have a scaled global platform across end categories and geographies, innovative label technologies, favorable 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.