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Avery Dennison announces sale of European package label operations

Published on 2003-07-28. Author : SpecialChem

 

Avery Dennison Corporation announced that it has signed an agreement to sell its package label converting business in Europe to CCL Industries Inc., a label and packaging solutions company based in Toronto, Ontario.

Cash proceeds from the sale are expected to be approximately $60 million. In addition, the deal includes a long-term, global supply agreement for Avery Dennison to provide pressure-sensitive base materials to CCL Industries. This supply contract is expected to generate revenue for the Company in 2004 that will partially offset the decrease in sales resulting from the divestiture. The transaction is expected to be finalized during the third quarter of 2003, subject to meeting customary closing conditions, including regulatory approvals.

"Divesting these package label converting operations in Europe is an important part of our strategy to focus on our key global businesses in pressure-sensitive adhesive materials, office products and retail information services," said Philip M. Neal, chairman and chief executive officer of Avery Dennison. "We will continue to invest in growing our existing operations in Europe, particularly in developing Eastern European markets."

The transaction involves the sale of two Avery Dennison package label converting facilities in Denmark, located in the cities of Brondby and Randers, as well as a package label converting plant in Chilly-Mazarin, France. The business serves European customers in the pharmaceutical, health and beauty aids, food and industrial markets with customized, self-adhesive labels for product packaging. The approximately 325 Avery Dennison employees at the three operations will become employees of CCL Industries, and the transition is expected to be seamless for customers of these operations.

Avery Dennison is a global leader in pressure-sensitive technology and innovative self-adhesive solutions for consumer products and label materials. Based in Pasadena, Calif., the Company had 2002 sales of $4.2 billion. Avery Dennison develops, manufactures and markets a wide range of products for consumer and industrial markets, including Avery-brand office products and graphics imaging media, Fasson-brand self-adhesive materials, peel-and-stick postage stamps, reflective highway safety products, automated retail tag, labeling and branding systems, and specialty tapes and polymers.

Source: Avery Dennison Corporation


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