Pasadena-based Avery Dennison Corp. recently announced that it will be selling two of its businesses to CCL Industries Inc. for $500 million in cash.
The transaction comes only three months after 3M gave up on its plans to purchase Avery Dennison’s office and consumer products unit. The deal was abandoned because the U.S. Department of Justice opposed it.
CCL, a Toronto-based specialty packaging maker, has swooped in to acquire it instead. The unit’s products include Marks-A-Lot and Hi-Liter markers, as well as other office products, such as binders. The division had sales of $730 million last year.
“CCL is one of our largest customers, and we have a long-standing relationship with them,” said Dean A. Scarborough, Chief Executive at Avery Dennison. “We are pleased that they will become the steward of the Avery brand for office products.”
Geoffrey Martin, Chief Executive at CCL, added:
“This acquisition has the potential to transform our company at many levels.”
If approved by regulators, this year’s transaction will be CCL’s largest acquisition to date.