Multi-Color Corporation announced a major recapitalization designed to reset its balance sheet and strengthen its ability to invest for long-term growth. The global label producer has entered into a restructuring support agreement with its equity sponsor, Clayton, Dubilier & Rice, and holders of approximately 70 percent of its senior secured first-lien debt.

The agreement will significantly deleverage MCC’s capital structure, reducing net funded debt from roughly $5.9 billion to approximately $2.0 billion. As part of the restructuring, MCC expects to cut annualized cash interest expense from about $475 million to $140 million in 2026, a reduction of more than $330 million, while extending long-term debt maturities to 2033.

To implement the transaction, MCC has launched a consent solicitation and plans to complete the restructuring through a prepackaged Chapter 11 process. The restructuring is supported by CD&R and a supermajority of lenders, who have agreed to backstop a nearly $890 million investment in new common and preferred equity. Upon emergence, MCC expects to have more than $500 million in available liquidity to support ongoing operations, capital investment, and strategic growth initiatives.

Hassan Rmaile, President and Chief Executive Officer of MCC, said the recapitalization builds on operational and commercial progress made over the past two years. He noted that optimizing the company’s capital structure is a critical step in advancing MCC’s growth strategy, enabling continued investment in innovative, high-quality label solutions that help brands connect with consumers, protect product integrity, and support sustainability goals.

Importantly for customers and suppliers, MCC emphasized that the restructuring is designed to be business as usual. All trade vendors are expected to be paid in full, and global operations and customer service are expected to continue without interruption. The restructuring support agreement also includes $250 million in new debtor-in-possession financing, intended to ensure sufficient liquidity throughout the Chapter 11 process and allow the company to meet its obligations to employees, partners, and suppliers.

Upon filing, MCC plans to seek standard first-day court approvals to continue paying wages and benefits, satisfy employee-related claims, pay vendors in the ordinary course, and maintain normal business operations while the recapitalization is completed.

With a strengthened balance sheet, extended debt maturities, and reduced interest burden, MCC said it will be better positioned to pursue long-term investment, innovation, and operational excellence across its global footprint. The company views the transaction as a foundation for sustainable growth in the evolving packaging and labeling market, rather than a retrenchment, signaling continued commitment to customers, employees, and brand owners worldwide.