The Designed and Engineered Solutions (DES) and Office and Consumer Products businesses of Avery Dennison have been sold to CCL Industries.
Avery Dennison Corp. has completed the sale of its Designed and Engineered Solutions (DES) and Office and Consumer Products businesses to CCL Industries Inc. for USD 500 million, subject to customary closing adjustments expected to be finalized during the third quarter.
The company has filed an amendment to the definitive purchase agreement on form 8-K with the US Securities and Exchange Commission.
Avery Dennison continues to expect net proceeds from the sale of approximately USD 400 million, and intends to use them to repurchase shares and make an additional pension plan contribution.
According to a statement from CCL, 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.”