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.
