Avery Dennison announces that it has signed a definitive agreement to sell its Office and Consumer Products (OCP) and Designed and Engineered Solutions (DES) businesses to CCL Industries Inc., a global leader in specialty packaging solutions, for $500 million in cash. The transaction is subject to customary closing conditions, adjustments and regulatory approvals, and is expected to be completed in mid-2013.
According to Euwid, Avery Dennison tried to sell the OCP unit to 3M, but the US-Department of Justice blocked the deal over antitrust concerns.
“This sale is consistent with our goal of maximizing the value of our businesses for Avery Dennison’s shareholders, and focusing on our industry-leading Pressure-sensitive Materials and Retail Branding and Information Solutions businesses,” said Dean A. Scarborough, Avery Dennison chairman, president and chief executive officer. “CCL is one of our largest customers, and we have a long-standing relationship with them. We are pleased that they will become the steward of the Avery brand for office products and augment their specialty converting portfolio through this transaction.”
Avery Dennison intends to use the expected net sale proceeds of approximately $400 million to repurchase shares and make an additional pension contribution.
