Multi-Color Corporation (MCC) has announced a major financial restructuring designed to strengthen its balance sheet and position the company for long-term growth and investment.

The global label producer has reached an agreement with lenders holding approximately 70% of its secured first-lien debt, along with its equity sponsor Clayton, Dubilier & Rice (CD&R), to implement a comprehensive restructuring plan. Once completed, the transaction is expected to reduce MCC’s net debt from approximately $5.9 billion to about $2.0 billion, significantly lowering the company’s leverage.

As part of the restructuring, MCC’s annual cash interest expense is projected to drop from roughly $475 million to about $140 million in 2026, creating more than $330 million in annual savings. The company will also extend its long-term debt maturities to 2033 and receive an $889 million investment in new common and preferred equity to support future growth initiatives. Following completion of the transaction, MCC expects to maintain more than $500 million in available liquidity.

To carry out the restructuring, MCC has launched a prepackaged Chapter 11 process that already has the backing of key lenders and CD&R. The company emphasized that the filing is a financial reorganization and not an operational restructuring.

“Our operational initiatives are gaining momentum, and optimizing our capital structure is an important step in advancing our growth strategy,” states Hassan Rmaile, president and CEO of MCC. “This agreement creates a stronger financial foundation that allows us to continue investing in innovative, high-quality label solutions for our customers.”

MCC said business operations will continue without disruption throughout the restructuring process. The company has secured $250 million in debtor-in-possession financing to support ongoing operations and working capital needs. According to MCC, this funding will allow the company to maintain normal business activity, including paying employees, suppliers, and vendors, and fulfilling customer commitments.

The company plans to seek court approval to continue wages and benefits, honor vendor agreements, and maintain day-to-day operations as the restructuring moves forward.