Avery Dennison Corporation is selling its office and consumer products operations to 3M Co. for $550 million in cash.
The office and consumer products business includes labels, binders, presentation products, filing and indexing products, writing instruments, and other office and home organization products.
The division is based in Brea, California, and includes about 3,000 employees globally. Sales for 2011 are expected to be about $765 million.
“The sale of our Office and Consumer Products business to 3M presents the best opportunity to maximize OCP’s value for Avery Dennison’s shareholders, and complements 3M’s global portfolio,” said Dean A. Scarborough, Avery Dennison chairman, president and chief executive officer. “Our industry-leading Pressure-sensitive Materials and Retail Branding and Information Solutions businesses, combined with our strong balance sheet, make us well positioned for profitable growth and increased return of cash to shareholders.”
Avery Dennison intends to use the proceeds from the transaction primarily to reduce debt, make additional pension contributions, and repurchase shares. This transaction will not negatively impact the Company’s common stock dividend.
The transaction is expected to be completed in the second half of 2012.
