Avery Dennison to acquire Paxar for $1.34 billion

Avery Dennison Corporation and Paxar Corporation, recently announced that their boards of directors have unanimously approved a definitive agreement for Avery Dennison to acquire all outstanding shares of Paxar for $30.50 per share in a cash transaction valued at approximately $1.34 billion. The transaction is expected to enhance Avery Dennison’s ability to compete and grow in the fragmented, expanding $15 billion-plus global retail information and brand identification market.

Paxar is a global leader in providing identification solutions to the retail and apparel industry, worldwide. Paxar’s leadership in brand development, merchandising, information services and supply chain solutions enables Paxar to satisfy customer needs around the world.

“This combination is a terrific strategic fit. Paxar’s highly complementary capabilities advance our strategy to deliver exceptional products and superior service to customers at every level of the global retail supply chain, and to increase efficiency and reduce costs in a rapidly changing and increasingly competitive global marketplace. In addition, this acquisition will allow us to invest in product innovation and services that will serve our existing customers even better,” said Dean A Scarborough, president and chief executive officer of Avery Dennison.

As per Rob van der Merwe, chairman, president and chief executive officer of Paxar Corporation, “Combining with Avery Dennison provides substantial benefits to our customers while delivering compelling value to Paxar shareholders. In particular, the broader capabilities of the combined company will better meet customer demands for improved quality, product innovation and speed of delivery. Although we understand that some jobs will be affected through the integration of our businesses, employees of the combined company will have expanded opportunities as part of a larger organization.”