Avery Dennison to Acquire Mactac Europe
April 27 2016 - 6:47AM
Business Wire
Enhances Avery Dennison’s position in
European graphics markets
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160427005606/en/
Avery DennisonMedia ContactRob Six, (626)
304-2361rob.six@averydennison.comorInvestor RelationsCynthia
Guenther, (626) 304-2204investorcom@averydennison.comorPlatinum
EquityMedia ContactDan Whelan, (310)
282-9202dwhelan@platinumequity.com
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