Roughly a month after Bloomberg reported a rumor that Multi-Color (LABL) was pursuing a sale of the company, and about two weeks after management acknowledged it as part of its fiscal third quarter earnings report, management announced that it had accepted a bid to be acquired by Platinum Equity in an all-cash deal worth $50/share.
This
buyout price is not all that investors could have hoped for, but it’s
not a bad outcome for a company that has been struggling for some time
now and that didn’t really seem to have any credible plan in place to
drive meaningfully better results. While the offer price doesn’t lock
the door on a competing bid, I don’t expect one and I would expect the
shares to trade at a relatively low discount to the deal price as
regulatory approval and funding aren’t really meaningful risks to deal
completion.
Continue here:
Multi-Color Gets Its Bid
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