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Mergers and acquisitions Score 65 Bullish

The Label Makers Completes Acquisition of First Choice Labels in Strategic Industry Consolidation

Dec 09, 2025 11:11 UTC
TLM, FCL

The Label Makers, a U.S.-based specialty labeling provider, has acquired First Choice Labels, a regional label manufacturer, in a move signaling continued consolidation within the industrial printing and packaging sector. The transaction, finalized in December 2025, enhances The Label Makers’ production capacity and geographic reach.

  • The Label Makers acquired First Choice Labels for $28 million in cash
  • First Choice Labels operates a 25,000 sq. ft. facility in Cincinnati, Ohio
  • The acquisition increases The Label Makers’ production capacity by 18%
  • Integration to be completed by Q2 2026; cost synergies of $3.2M expected by 2027
  • Investment of $4.5 million planned for equipment upgrades at First Choice’s site
  • Post-acquisition annual output reaches approximately 1.2 billion labels

The Label Makers announced the acquisition of First Choice Labels, effective December 5, 2025, marking a strategic expansion into the Midwest market. First Choice Labels, headquartered in Cincinnati, Ohio, operates a 25,000-square-foot facility specializing in custom pressure-sensitive labels for food, beverage, and consumer goods clients. The acquisition includes all physical assets, intellectual property, and a workforce of approximately 75 employees. The deal is valued at $28 million in cash, funded through The Label Makers’ existing credit facility and internal cash reserves. This transaction follows The Label Makers’ prior acquisition of Mid-Atlantic Label Co. in 2023 and reflects a broader trend of mid-sized industrial firms consolidating regional operations to strengthen supply chain resilience and customer service capabilities. The integration process is expected to be completed by Q2 2026, with full operational alignment anticipated thereafter. Post-acquisition, The Label Makers’ total production capacity will increase by 18%, raising its annual output to approximately 1.2 billion labels. The company also plans to invest $4.5 million in upgrading First Choice’s equipment over the next 18 months to align with its digital printing standards and sustainability initiatives. This includes the deployment of solvent-free ink systems and enhanced waste recycling protocols. The acquisition is expected to generate $3.2 million in annual cost synergies by 2027, primarily through supply chain optimization and reduced overhead. While the transaction is not material to The Label Makers’ overall revenue—projected at $190 million for FY2025—its strategic value lies in expanding market presence in high-growth segments such as sustainable packaging and e-commerce labeling.

The information presented is derived from publicly available data and official announcements. No third-party data providers or proprietary sources are referenced.