Avery Dennison Corp. recently announced that it has signed a definitive agreement to sell its Office and Consumer Products (OCP) and Designed and Engineered Solutions (DES) businesses to CCL Industries Inc. for $500 million in cash. The transaction is expected to be completed mid-year.
“This sale is consistent with our goal of maximizing the value of our businesses for Avery Dennison’s shareholders, and focusing on our industry-leading Pressure-Sensitive Materials and Retail Branding and Information Solutions businesses,” said Dean A. Scarborough, chairman, president and CEO of Avery Dennison. “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.”
Avery Dennison reportedly intends to use the expected net sale proceeds of approximately $400 million to repurchase shares and make an additional pension contribution.