US-based producer of printed in-mould labels Multi-Color (McC) has signed an agreement to acquire 100% ownership of Scottish whisky label specialist Labelgraphics for £16.5m.

The acquisition of Labelgraphics, which offers services to the UK spirit and wine markets with annual revenues of about £13m, will support MCC’s aim to serve the UK market and extends the company’s position globally.

MCC said that the deal, which is expected to close in the first week of April and includes a three-year earn-out for Labelgraphics’ owners, would allow it to tap into the growing global export market for Scottish spirits.

The company is also looking for significant growth from Labelgraphics, which has recently moved to a new facility in Glasgow.

According to MCC, Labelgraphics will become part of the current European group with operations in Italy, France and Poland.

MCC president and CEO Nigel Vinecombe said that the relationship with Labelgraphics has been an excellent one for many years.

In October last year, MCC completed the acquisition of Adhesion-owned packaging label provider YORK Label in a deal worth $356m.

MCC provides label solutions for home and personal care, wine and spirit, food and beverage and specialty consumer products, serves international brand owners in North, Central and South America, Europe, Australia, New Zealand, South Africa and China, and hopes to achieve annual revenues over $650m for FY13.