3M to acquire Avery Dennison's office, consumer business

In a bid to extend its footprint in the office, education and consumer categories, the $23-billion 3M yesterday said that it had entered into a definitive agreement to acquire the office and consumer products business of Avery Dennison Corp.

3M will pay a total purchase price of $550 million in cash, subject to post-closing adjustments.

Avery Dennison's office and consumer products business is one of the world's leading suppliers of office and education products including labels, binders, presentation products, filing and indexing products, writing instruments, and other office and home organisation products.

The business also includes the Avery, Hi-Liters and Marks-A-Lot product brands in the US, Canada, Germany, France, United Kingdom, Australia, New Zealand, and several other countries, 3M said in a statement.

"Adding the business will increase 3M's scale and broaden its global presence in office, education and consumer products," it said.  

Avery Dennison expects its office and consumer products business to generate 2011 sales of approximately $765 million; and expected adjusted operating income and earnings before interest, taxes, depreciation and amortisation (EBITDA) in 2011 of approximately $80 million and $95 million, respectively.