Austria-based packaging and labels supplier Constantia Flexibles Holding GmbH announced that it has signed an agreement to sell its labels division to Multi-Color Corp. for an enterprise value of about €1.15 billion. We understand that Constantia Flexibles will use the majority of the proceeds from the transaction for debt repayment, which will lead to a meaningful improvement in its credit metrics. Therefore, we are placing our 'B+' rating on the company and the 'B' issue rating on its senior secured debt on CreditWatch with positive implications. If the transaction and debt reduction occur in line with our expectations, we could raise the ratings by up to two notches. We anticipate resolving the CreditWatch placement following the close of the transaction,
