Avery Dennison has signed an agreement to sell its Office and Consumer Products (OCP) and Designed and Engineered Solutions (DES) businesses to Canadian packaging company CCL Industries for $500m.
Avery Dennison chairman, president and chief executive officer Dean Scarborough said the sale is consistent with the company’s goal of focusing on its Pressure-sensitive Materials and Retail Branding and Information Solutions businesses.
"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," Scarborough said.
The net sale proceeds of about $400m will be used by Avery Dennison to repurchase shares and make an additional pension contribution.
The OCP business, which has 2012 sales of about $730m, supplies printable media and other products, and the DES segment with sales of $180m in 2012, manufactures custom pressure-sensitive labels and coated films for specialty packaging, durable goods and electronics.
Combined 2012 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the businesses was about $110m.
According to the global manufacturer and distributor of pressure-sensitive adhesive materials Avery Dennison, the transaction is expected to be completed in mid-2013.