Avery Dennison Corp. recently announced it has signed a definitive agreement to sell its Office and Consumer Products business (OCP) to 3M Co. for $550 million in cash.
“The sale of our Office and Consumer Products business to 3M presents the best opportunity to maximize OCP’s value for Avery Dennison’s shareholders and complements 3M’s global portfolio,” said Dean A. Scarborough, chairman, president and CEO of Avery Dennison. “Our industry-leading Pressure-Sensitive Materials and Retail Branding and Information Solutions businesses, combined with our strong balance sheet, make us well-positioned for profitable growth and increased return of cash to shareholders.”
Avery Dennison reportedly intends to use the proceeds from the transaction primarily to reduce debt, make additional pension contributions and repurchase shares. The company does not expect the transaction to negatively impact its common stock dividend.
Avery Dennison’s OCP business is a leading supplier of printable media and other products, with expected sales in 2011 of approximately $765 million. Avery Dennison Corp.’s pro forma sales in 2011, excluding OCP, are expected to be approximately $6 billion. All expectations herein of the performance of OCP and Avery Dennison are as of October 26, 2011, the date that the company announced its third quarter 2011 results.
The transaction is expected to be completed in the second half of 2012.
For more information, visitwww.3m.comorwww.averydennison.com.
Avery Dennison to Sell Office and Consumer Products Business to 3M
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