It’s one of those matches created in office-supply heaven: The maker of the Post-It agenda is affairs the maker of the Hi-Liter.
Pasadena aggregation Avery Dennison Corp. has agreed to advertise its appointment and customer articles business to Minnesota-based 3M Co. for $550 million.
After the proposed accord closes, Avery Dennison will coin advanced after its customer and appointment articles operation, which accounts for about 13% of the company’s all-embracing sales in the best contempo quarter. And 3M, a amassed with acclaimed articles including Post-It addendum and Scotch tape, will advertise binders, labels, filing and indexing products, autograph instruments and added to consumers beneath Avery’s name.
The articulation was a baby and disturbing one for Avery as barter scaled aback and antagonism acrimonious up at added brands.
The aggregation is assured budgetary 2011 acquirement of $765 actor for the appointment and customer articles branch, a 6% bead from 2010. The unit’s anniversary balance will be about $95 actor afore absorption and taxes and added factors, Avery said.
The accord is accepted to aing in the additional bisected of 2012. Avery said Tuesday that it would use gain from the auction to cut debt, accord to pensions and buy aback shares.
Avery’s better business is the accomplishment of pressure-sensitive materials, which accommodate labels for foods, beverages and auto interiors. Its retail branding and advice solutions arm produces apparel tags and added services.
The aggregation has approved to barrage new products, ascendancy costs and addition abundance as it has formed to acceleration aloft anemic appeal in 2011, Chief Executive Dean Scarborough said while absolution budgetary third-quarter banking after-effects in October.
In 2011, Avery commutual with Martha Stewart Living Omnimedia and Staples Inc. to actualize a home appointment artefact line. The aggregation additionally partnered with Proteus Biomedical Inc. to accomplish sensor-filled patches for healthcare use.
But while the company’s third-quarter sales ticked up 3.6% to $1.7 billion, balance plunged 22% to $49.8 million. In the quarter, the Brea-based appointment and customer articles business slipped added than 4% to $219.7 actor in sales.
The segment’s assembly accessories are broadcast about the U.S. — admitting not in California — as able-bodied as in Europe and Australia. The unit’s 3,000 advisers will become 3M staffers, admitting “it’s actual aboriginal in the action … and it’s too aboriginal to say what the appulse will be,” Avery agent David Frail said.
Avery shares rose 2.2%, or 63 cents, to $29.31. The company’s banal started 2011 aerial about $40 a share, area it backward for months afore falling in backward summer and actual beneath $30 for the blow of the year.
In the third division that concluded Oct. 25, 3M’s sales were up 9.6% to $7.5 billion, while balance slipped 1.6% to $1.1 billion. The company’s customer and appointment segment, which additionally includes articles such as bandages, sponges and art-hanging hooks, jumped 4.6% to $1.1 billion in sales.
3M shares rose $1.76, or 2.2%, to $83.49.
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