CCL Industries of Toronto, a global packaging power, primarily in the label sector, is spending around $500 million to purchase two business units of office products maker Avery Dennison Corporation.
CCL Industries, according to a report by Associated Press, is acquiring Avery Dennison office and consumer products, as well as its designed and engineered solutions businesses. These Avery Dennison businesses had combined revenue of approximately $910 million in 2012.
The news of CCL’s acquisition follows the cancellation of an earlier proposed deal that would have seen 3M Co. purchase Avery Dennison’s office and consumer products division for $550 million. That acquisition, announced in January 2012, was ultimately cancelled in October 2012 over anti-trust concerns, as the Associated Press reported how the U.S. Department of Justice announced it would take legal action to stop the sale.
If the new deal between CCL Industries and Avery Dennison closes by the middle of the year, as expected, CCL will introduce a significant boost for its pressure-sensitive materials and retail branding and information solutions businesses. In addition to labels, CCL also produces containers and plastic tubes.
Led by President and CEO, Geoffrey Martin, CCL Industries consists of three divisions CCL Label, CCL Container and CCL Tube with over 70 manufacturing facilities in North America, Latin America, Europe, Asia, Australia and Africa operated by approximately 6,600 dedicated employees.