The acquisition of Vestcom will help Avery Dennison advance its plans, including the opportunity to accelerate the adoption of intelligent labels
Avery Dennison has agreed to acquire US-based Vestcom. (Credit: Capri23auto from Pixabay)
Global materials science company Avery Dennison has agreed to acquire US-based privately-held company Vestcom for $1.45bn in cash.
Based in Little Rock, Arkansas, Vestcom offers pricing and branded labelling solutions for retailers and consumer packaged goods companies.
The company is owned by Charlesbank Capital Partners, a US-based private equity investment firm, since late 2016.
Vestcom chairman and CEO John Lawlor said: “The capabilities of Avery Dennison will enable Vestcom to further accelerate innovation and continue delivering high-value solutions that drive sales and productivity for retailers and CPGs.”
The acquisition of Vestcom will help Avery Dennison advance its plans, including the opportunity to accelerate the adoption of intelligent labels.
Vestcom’s product portfolio consists of stackz pre-cut and pre-sorted self-adhering shelf labels, shelfStrips shelf-edge planogram displays, adSigns signage kits and shelfAdz branded marketing displays.
The company has sales across multiple US retail channels, including grocery, drug, and dollar.
With around 1,200 employees, Vestcom operates 11 production facilities in the US and generates up to $400m in annual revenue.
Avery Dennison chairman, president, and CEO Mitch Butier said: “Vestcom is a high-performing business that is a near adjacency to RBIS.
“With this acquisition, we are expanding our position in high-value categories and adding complementary channel access and data management capabilities that have the potential to further accelerate our Intelligent Labels strategy. We look forward to welcoming them into the Avery Dennison team.”
Subject to regulatory approvals and other customary closing conditions, the deal is expected to be completed in the third quarter of this year.
Goldman Sachs and Latham and Watkins advised the materials science firm on the deal, while Robert W. Baird & Co, Jefferies, RBC Capital Markets and Goodwin Procter advised Charlesbank on the deal.
In January this year, Avery Dennison acquired US-based pressure-sensitive roll label films provider ACPO in a deal worth $87.6m.