Canadian packaging company CCL Industries Inc. has signed an agreement to acquire the office and consumer products businesses of Avery Dennison for CDN$500 million.
Avery Dennison makes a wide array of plastic, paper and multi-material labels for around 10,000 customers around the world in the consumer products and durable goods sectors. Its office products business is well-known for marketing labels, sticky notes, binders and pens such as hi-lighters.
CCL Industries CEO Geoffrey Martin, said, “This acquisition has the potential to transform our company at many levels. We are acquiring the Avery brand as part of the transaction to build on the franchise established for many decades for labels and other printable media that consumers and businesses use in digital computer printers around the world.
CCL, based in Toronto, claims to be the world's largest converter of pressure sensitive and film materials for label applications and it supplies global customers in consumer packaging, healthcare, automotive and consumer durable markets. Its CCL Tube business is a major extruder of plastic tubes for consumer products in North America.
CCL consists of three divisions - CCL Label, CCL Container and CCL Tube - with over 70 state-of-the-art manufacturing facilities worldwide, operated by around 6600 employees.
The company is represented in Australia by wine and healthcare label company CCL Label (previously operating as Clear Image) with operations in Adelaide, Nuriootpa in the Barossa Valley, Sydney and Melbourne.
In July last year, CCL acquired the pharmaceutical division of Sydney-based Graphitype Printing Services, which has been rolled into the Melbourne-based healthcare division.
The Avery acquisition is the largest in CCL’s history and takes the company’s annual revenue to more than CDN$2 billion for the first time.
Last year, 3M had planned to buy Avery Dennison's office products business but the deal was terminated after the US Justice Department withheld approval because of anti-trust concerns.
