Private equity firm Clayton, Dubilier & Rice LLC is buying two label suppliers and plans to merge the two into a business with annual sales of about $3 billion.
The companies being acquired are Cincinnati-based Multi-Color Corp. and Elk Grove, Ill.-based Fort Dearborn Co. Terms of the deals were not disclosed.
New York-based CD&R said the combined business will be the "world's largest label solutions company."
CD&R is buying Multi-Color from Beverly Hills, Calif.-based Platinum Equity LLC. Platinum Equity is owned by billionaire and Detroit Pistons owner Tom Gores. Platinum Equity has owned Multi-Color since 2019.
CD&R is buying Fort Dearborn from Boston-based private equity firm Advent International, which has been Fort Dearborn's largest investor since 2016.
CD&R called Multi-Color one of the world's largest producers of high-quality, pressure sensitive, in-mold and heat transfer labels and a major manufacturer of cut and stack, roll fed, aluminum and shrink sleeve labels.
David Scheible, operating adviser to CD&R funds, will be chairman of the combined company. He is the former chairman and CEO of Graphic Packaging Holding Co. and currently serves on the Fort Dearborn board of directors.
Multi-Color employs more than 9,000 at more than 70 label operations around the world. Fort Dearborn has 20 U.S. locations.