CCL Industries to acquire Avery Dennison label converting business

CCL Industries has signed a binding agreement to acquire the Office & Consumer Products and Designed & Engineered Solutions businesses of Avery Dennison on a debt-free basis for $500 million, subject to customary closing adjustments.

In 2012, the two businesses had combined revenues of approximately $910 million with an estimated adjusted EBITDA of $110 million. The transaction requires regulatory approval but is expected to close by mid-2013.

“This acquisition has the potential to transform our company at many levels,” said Geoffrey Martin, President and CEO of CCL Industries. “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.

“In addition, we are significantly expanding our CCL Label market sectors with our entry into the North American durable goods market. This acquisition is the largest in CCL’s history and takes the company’s pro-forma annual revenue above $2 billion for the first time.”