MCC buys John Watson to add to label print collection

MCC has strengthened its position in the drinks labels market buying a second leading Scots player.

Scottish label printer John Watson has agreed a takeover deal with Cincinnati based Multi-Color Corporation less than a year after a previous takeover agreement fell apart.

This time the deal seems certain to go through. It is due for completion tomorrow (1 October). It will be the second Scottish purchase by the global label company following its purchase of Labelgraphics in March last year. Both business serve the drinks and spirits sector; Labelgraphics with rollfed pressure sensitive labels and John Watson with litho printed wet labels as well as self adhesive label production.

It also B1 Heidelberg and a nine colour CD74.

The acquisition of John Watson falls 11 months after the Glasgow company announced it has agreed a takeover by CCL, a global labels group headquartered in Toronto. Talks had been underway for months leading to the formal offer. John Watson would step aside, remaining as chairman during an earn out period. However, just four months later the offer was withdrawn, citing an inability to reach agreement on contractual terms, only for MCC to step in.

At the same time MCC is buying Swiss wine label printer Gern & Cie, a smaller family owned business. Combined there is a turnover of $20 million.

John Watson has a turnover of around £12 million, reporting a pretax profit of £278,000 in 2012. Terms of the acquisition were not announced. However, MCL paid £16.5 million for Labelgraphics, which had revenues of around £13 million at the time. It has been renamed Collotype Labels Glasgow, joining two plants in France, two in Italy and one in Poland. CCL has far more facilities across Europe, though not in drinks labels.

Nigel Vinecombe, MCC president and CEO, says: “These acquisitions strengthen our leadership position in the large European Wine & Spirit label markets. We are delighted that both management teams will continue to run the businesses, allowing for the current owners, John Watson and Michel Quinche to retire after successfully leading their companies to the best in their markets.”

John Watson is Scotland’s oldest printing company, dating from 1824 and operates from 3,700m² factory close to the centre of the city. MCC’s Collotype Labels Glasgow business operates from new premises on the north side of the Clyde on the edge of the city. It moved to a new 4,600m² plant last year, taking delivery of an Indigo 6600, and has space for a further 3,700m² building.