WHISKY LABEL PRINTER JOHN WATSON & CO is being bought by Canadian owned multinational label company CCL Industries, less than a year after US company Multi Color Corporation bought Labelgraphics, a main rival to John Watson & Co.
The deal for the Glasgow printer is at the heads of agreement stage and will be completed, subject to due diligence early in 2014. The final sale price will depend on performance over the 2013 calendar year. John Watson’s sales are approximately £12 million a year. Once the deal is finalised, John Watson, now 64 and fifth generation of the family to head the business, will retire. He will be chairman for the next year working alongside executives from CCL and joint managing directors Allan McDonnell and Robert McLachlan who have committed themselves to the business.
CCL ALREADY OWNS LABEL PRINTERS IN THE UK specialising in healthcare, food, toiletries and paint. This will be its first presence in the important wine and spirits sector in this country. Geoffrey Martin, president and CEO of CCL Industries, says: “we have held John Watson & Co in high regard for a long time and believe the great team that John assembled will allow us to get closer to important global customers located in Scotland. We also plan to support the planned acquisition with further investment in the operation in Glasgow.”
This would allow the business to move to a greenfield site, something that would take place in 2014 at the earliest. Watson adds: “We believe that CCL will be a very good home for John Watson & Co and that it will take the business to the next level.”
THE SAME REASONING LAY BEHIND THE ACQUISITION by Multi-Color of Labelgraphics in March this year. That business had only recently moved to a new site in Glasgow, though there is room for additional buildings on the site. It agreed to buy the £13 million turnover business for £16.5 million.
Both deals are part of a consolidation of the label industry which has been led by the healthcare and toiletries sector and now is bringing together drinks labelling which has remained highly fragmented.
