Enhances Avery Dennison’s position in European graphics markets
GLENDALE, Calif. -- (Business Wire)
Avery Dennison (NYSE:AVY) today announced a definitive agreement to
acquire the European business of Mactac from Platinum Equity, a
California-based private equity firm, for the purchase price of €200
million including assumed debt. With 2015 year-end run-rate revenues of
€147 million, or approximately $170 million, and approximately 470
employees, the business is a leading manufacturer of high-quality
pressure-sensitive materials, serving several high-value segments,
including graphics, specialty labels and industrial tapes. Mactac’s core
product lines complement Avery Dennison’s existing graphics portfolio.
“The acquisition of Mactac Europe enhances our competitiveness in
high-value graphics, where we have sustained above-average growth over
the past few years,” said Dean Scarborough, Avery Dennison chairman and
CEO. “Known for high product quality and outstanding service, Mactac
complements our existing business with a strong brand and loyal customer
base, expanding our product offering, capabilities, and distributor
network.”
With a manufacturing facility in Soignies, Belgium, along with sales
offices and warehouses in Europe and Asia, the Mactac business expands
Avery Dennison’s global footprint and provides needed capacity to
support its growth. Through export sales, Mactac Europe also serves
customers in South America, Asia Pacific, the Middle East, and North
Africa. The transaction excludes the Mactac business in the U.S., Canada
and Mexico and its North American exports.
The acquisition is expected to have an immaterial impact to earnings per
share in 2016 and be approximately ten cents accretive to EPS in 2017.
Avery Dennison will maintain the Mactac brand for graphic films,
building on its existing strengths and customer relationships.
“We have been very impressed with what Mactac’s team has accomplished
and believe the combination of the two companies’ talented employee
bases will create a stronger European team with expanded capabilities
and growth opportunities,” said Mitch Butier, president and COO, Avery
Dennison. “We plan to continue operating Mactac’s manufacturing facility
in Soignies, Belgium and to make the facility and its people a key
driver of Avery Dennison’s future innovation and growth in Europe.”
“Mactac’s European business has come a long way with the successful
restructuring of its operations and product portfolio. It is today
fundamentally strong and well positioned to join Avery Dennison and take
this next step in the company’s evolution,” said Platinum Equity Partner
Louis Samson. “The company’s progress and recent success is a testament
to its strong leadership team and dedicated employees. We are proud of
everything Mactac Europe has accomplished under Platinum Equity’s
ownership.”
Samson said his team now remains focused on partnering with Mactac’s
North American leadership to continue driving its growth and
profitability.
Avery Dennison will fund the acquisition with existing cash and credit
facilities. The acquisition is expected to close within three months,
subject to customary conditions and approvals.
About Avery Dennison
Avery Dennison (NYSE: AVY) is a global leader in labeling and packaging
materials and solutions. The company’s applications and technologies are
an integral part of products used in every major market and industry.
With operations in more than 50 countries and more than 25,000 employees
worldwide, Avery Dennison serves customers with insights and innovations
that help make brands more inspiring and the world more intelligent.
Headquartered in Glendale, California, the company reported sales from
continuing operations of $6.0 billion in 2015. Learn more about the
company at www.averydennison.com.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity (www.platinumequity.com)
is a global investment firm with a portfolio of approximately 25
operating companies that serve customers around the world. Platinum
Equity specializes in mergers, acquisitions and operations – a
trademarked strategy it calls M&A&O® – acquiring and
operating companies in a broad range of business markets, including
manufacturing, distribution, transportation and logistics, equipment
rental, metals services, media and entertainment, technology,
telecommunications and other industries. Over the past 20 years Platinum
Equity has completed more than 175 acquisitions.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160427005606/en/
Contacts:
Avery Dennison
Media Contact
Rob Six, (626)
304-2361
rob.six@averydennison.com
or
Investor
Relations
Cynthia Guenther, (626) 304-2204
investorcom@averydennison.com
or
Platinum
Equity
Media Contact
Dan Whelan, (310) 282-9202
dwhelan@platinumequity.com
Source: Avery Dennison
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