Avery Dennison acquires Paxar

Avery Dennison is 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 Scarborough, President and

CEO 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

Scarborough.

“We’ve more than doubled our share of

sales coming from the emerging markets

to 25 percent over the last five years,

with above average profitability. Growth

in China has been particularly robust,

driven by the expansion of the middle class

and the resulting increase in consumer

spending there.

“In terms of market development,

India is about five or ten years behind

China today. We’ve already entered the

market and are seeing strong growth.

All of our key businesses will have a

footprint in India by the end of the year,”

added the Avery chief.