CCL Industries Completes Avery Dennison Label Consumer Products Acquisition
CCL Industries Inc. ("CCL"), a world leader in specialty label and packaging solutions for global corporations, small businesses and consumers confirmed today that it has completed the acquisition of Avery Dennison's Office & Consumer Products ("OCP") and Designed & Engineered Solutions ("DES") businesses previously announced on January 30, 2013, for a debt-free cash purchase price of US$500 million subject to customary post-closing adjustments to be finalized during the third quarter.
The OCP business will cease to use its former Avery Dennison divisional identity and trade with immediate effect simply as "Avery" becoming a publicly reportable operating segment of CCL, with effect from the third quarter of 2013.
The Company announced that it is appointing Jim Sellors as President of Avery North America with immediate effect. Mr. Sellors is a long-term CCL leader most recently serving as Group Vice President of the North American and Australian Healthcare & Specialty label business. Prior to CCL, he spent several years in the United States in Marketing & Product Development at Newell Rubbermaid. Mark Cooper has been appointed Vice President & Managing Director for Avery in Europe and Asia Pacific and will join CCL in August from Bong AB, a leading European supplier of envelopes. Mr. Cooper previously spent more than 20 years at Avery Dennison predominantly in their OCP sector in both Europe and the United States.
Both executives will report to Geoffrey T. Martin, President and CEO of CCL, who commented, "I would like to acknowledge Tim Bond, President of OCP Worldwide, for the excellent support he has given us in the lengthy transition and integration process which will continue through the summer period. He indicated early on that he may well pursue an alternative path for personal and professional reasons and so it has proved. I'm sure many of our customers and new employees will join me in thanking him for his leadership, particularly during the exhaustive divestiture period, and wish him every success in the future. We are very fortunate to have found two such highly experienced leaders to succeed him and take the iconic 'Avery' brand with its global reputation as a digital printing enabler into a successful future under CCL ownership."
The DES business will be integrated into and augment an enlarged CCL Label reporting segment. Acquired operations involved in the automotive and consumer durables markets will trade as CCL Design alongside the Company's existing business in Germany. Remaining DES facilities will become important additions to the market sector business units of CCL Label. CCL Container will continue as the third reporting segment of the Company.
CCL Industries employs approximately 9,800 people and operates 87 production facilities in 25 countries on 5 continents with corporate offices in Toronto, Canada, and Framingham, Massachusetts. CCL Label is the world's largest converter of pressure sensitive and film materials for a wide range of decorative, instructional and functional applications for large global customers in the consumer packaging, healthcare, automotive and consumer durables markets. Extruded plastic tubes, folded instructional leaflets, precision printed & die cut metal components with LED displays and other complementary products and services are sold in parallel to specific end use markets. Avery is the world's largest supplier of labels, specialty converted media and software solutions to enable short run digital printing in businesses and homes alongside complementary office products sold through distributors and mass market retailers. CCL Container is a leading producer of impact extruded aluminum aerosol cans and bottles for consumer packaged goods customers in the United States, Canada and Mexico.
This press release contains forward-looking information and forward-looking statements, as defined under applicable securities laws, (hereinafter collectively referred to as "forward-looking statements") that involve a number of risks and uncertainties. Forward-looking statements include all statements that are predictive in nature or depend on future events or conditions. Forward-looking statements are typically identified by the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Statements regarding the operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of the Company, other than statements of historical fact, are forward-looking statements. Specifically, this press release contains forward-looking statements regarding the success of the acquisition. Forward-looking statements are not guarantees of future performance. They involve known and unknown risks and uncertainties relating to future events and conditions including, but not limited to, the evolving global financial crisis and its impact on the world economy and capital markets; the impact of competition; consumer confidence and spending preferences; general economic and geopolitical conditions; currency exchange rates; interest rates and credit availability; technological change; changes in government regulations; risks associated with operating and product hazards; and CCL's ability to attract and retain qualified employees. Do not unduly rely on forward-looking statements as the Company's actual results could differ materially from those anticipated in these forward-looking statements.
Forward-looking statements are also based on a number of assumptions, which may prove to be incorrect, including, but not limited to, assumptions about the following: global economic recovery and higher consumer spending; improved customer demand for the Company's products; continued historical growth trends, market growth in specific segments and entering into new segments; the Company's ability to provide a wide range of products to multinational customers on a global basis; the benefits of the Company's focused strategies and operational approach; the achievement of the Company's plans for improved efficiency and lower costs, including stable aluminum costs; the availability of cash and credit; fluctuations of currency exchange rates; the Company's continued relations with its customers; and general business and economic conditions. Should one or more risks materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking statements. Further details on key risks can be found in the MD&A section of CCL's 2012 Annual Report, particularly under Section 4: "Risks and Uncertainties." CCL's annual and quarterly reports can be found online at www.cclind.com and www.sedar.com or are available upon request. Except as otherwise indicated, forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made may have on CCL's business. Such statements do not, unless otherwise specified by the Company, reflect the impact of dispositions, sales of assets, monetizations, mergers, acquisitions, other business combinations or transactions, asset write-downs or other charges announced or occurring after forward-looking statements are made. The financial impact of these transactions and non-recurring and other special items can be complex and depends on the facts particular to each of them and therefore cannot be described in a meaningful way in advance of knowing specific facts. The forward-looking statements are provided as of the date of this press release and the Company does not assume any obligation to update or revise the forward-looking statements to reflect new events or circumstances, except as required by law.
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Avery Products Corporation