It is expected to set up a two-stage auction in coming weeks.Multi-Color Corporation (MCC) has entered into a binding sales and purchase agreement to acquire 100% of the shares in Hexagon Holdings. Goldman Sachs' New Zealand office is running the sale. It is privately-owned by Mercury Capital and Kiwi businessman Tom Sturgess and shares common directors and owners with Blue Star - the printing business formerly owned by CHAMP Private Equity - but is run separately. Hexagon was put together by Mercury Capital through the merger of Blue Star Print Group's label businesses, Panprint and Kiwi Labels, with three other labels companies. Tyrekickers will have to overcome fears about the outlook for the printing industry more generally, if they are to bid aggressively. The business is expected to be worth $300 million to $400 million, which means it is big enough for global firms to consider and small enough to be offered to domestic buyout shops.

The potential roll-up story ensures Hexagon will be on the radar of cashed-up Australian and global private equity firms. The company makes 32 per cent of its revenue in Australia from brands including Hally Labels and Adhesif Labels. They were also told to consider Hexagon's ability to lead industry consolidation in Australia. Interested parties were told to think about double digit earnings growth with earnings forecast to be up 16 per cent a year, compounded, from the 2016 to 2018 financial years. The company makes labels for more than 3000 clients. The bulk of its sales come from the food and beverage sector including labels for wine, meat, dairy products and honey.

Hexagon holdings berhad