Clayton, Dubilier & Rice has made a definitive agreement under which its funds will acquire and combine Fort Dearborn and Multi-Color Corp., to create a global label services business. The CD&R funds are acquiring Fort Dearborn and MCC from global private equity investors Advent International and Platinum Equity, respectively.

“We see strong strategic logic and promising value creation potential in bringing these two leading label manufacturers together,” said 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.”

David Scheible, operating advisor to CD&R funds will serve as chairman of the combined company. Mr. 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,” said 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,” said 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,” said 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.”

Latham & Watkins served as legal counsel to MCC on the transaction. Goldman Sachs & Co., supported by Citi Bank, served as lead financial advisor to Fort Dearborn, and Kirkland & Ellis served as legal counsel. BofA Securities served as lead financial advisor and Barclays, Credit Suisse, Deutsche Bank Securities Inc., RBC Capital Markets LLC, UBS Investment Bank and Wells Fargo Securities LLC provided advisory services to CD&R, and Debevoise & Plimpton LLP served as legal counsel on the transaction. CD&R obtained committed financing from Bank of America, Goldman Sachs Bank, Barclays, Credit Suisse, Deutsche Bank Securities, UBS Investment Bank, Wells Fargo and RBC Capital Markets LLC.