A new chief executive will be leading Clermont County-based Multi-Color Corp. in 2016.
Vadis Rodato, the company’s global chief operating officer for its wine and spirit division, will become Multi-Color’s president and CEO on Jan. 1. Current President and CEO Nigel Vinecombe is stepping down from his roles and will become executive chairman of Multi-Color, the company announced Monday.
Vinecombe, who has been president and CEO since June 2010, will retain responsibility for mergers and acquisitions and investor relations activities. Robert Buck, the company’s current board chairman and board member since 2003, will remain in his role.
Rodato, 55, has been with the company for 21 years and will also be named to the company’s board of directors.
Multi-Color of Union Township, the global producer of labels for a wide range of products, announced the management change on the same day it reported its earnings for the quarter ended Sept. 30. Multi-Color’s profit rose 47 percent to $16.6 million, or 98 cents per share, in the company’s second fiscal quarter from a year ago. Earnings adjusted for one-time items fell 6 percent to $15.8 million.
Quarterly sales rose 3 percent to $219.8 million. But after accounting for acquisitions and currency fluctuations, sales dipped 2 percent largely because of lower sales in its North American consumer products markets.
Multi-Color had its biggest single-day drop of 2015 on Monday as shares fell 17 percent to $64.52. Trading activity on Monday was six times higher than a typical day. Multi-Color shares closed Tuesday down 1.4 percent to $63.61.
The company also announced it closed on a deal Oct. 1 to buy Supa Stik Labels based in Perth, Australia. Multi-Color said the Australian company is a $6 million-a-year operation. It also plans to close a plant in Greensboro, North Carolina within the next few months. It previously announced manufacturing facility closures in Norway, Michigan and Watertown, Wisconsin.
In August, the company said it hired a consultant to improve its internal controls and financial reporting.
Part of Multi-Color’s business strategy has been to acquire companies around the world within the globally fragmented label-making business. Since 2000, Multi-Color has completed more than 20 acquisitions of companies, according to Bloomberg data. One of the biggest of those acquisitions – when Multi-Color acquired Collotype in 2008 – brought Vinecombe to the company.
Labels from the company, which was founded in 1916, appear on products for brands such as Tide, Colgate, Miller Lite and Sutter Home. Multi-Color employs more than 4,400 people at 45 operations around the world.