Avery enhances growth potential in untapped markets, including Asia
23 Mar '07
3 min read
Avery Dennison Corporation and Paxar Corporation announced that their boards of directors have unanimously approved a definitive agreement for Avery Dennison to acquire all outstanding shares of Paxar for $30.50 per share in a cash transaction valued at approximately $1.34 billion.
The transaction is expected to enhance Avery Dennison's ability to compete and grow in the fragmented, expanding $15 billion-plus global retail information and brand identification market.
"This combination is a terrific strategic fit," said Dean A. Scarborough, president and chief executive officer of Avery Dennison. "Paxar's highly complementary capabilities advance our strategy to deliver exceptional products and superior service to customers at every level of the global retail supply chain, and to increase efficiency and reduce costs in a rapidly changing and increasingly competitive global marketplace. In addition, this acquisition will allow us to invest in product innovation and services that will serve our existing customers even better."
Avery Dennison's Retail Information Services (RIS) business represents one of its fastest-growing units. RIS provides brand identification and supply chain management solutions primarily for manufacturers and retailers, including tag and label design and printing; inventory and shipment tracking; and data management systems.
"This combination will give us the capabilities, products and geographic reach to pursue new segments of the global retail information and brand identification market. These segments include retailers and manufacturers serving local customers in India and China," said Mr. Scarborough.
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