10 June 1999: Avery Dennison Corp., the US manufacturer of self-adhesive solutions for consumer products and label systems, has agreed to acquire Stimsonite Corp. for about US$ 137 million.
The trans…
10 June 1999: Avery Dennison Corp., the US manufacturer of self-adhesive solutions for consumer products and label systems, has agreed to acquire Stimsonite Corp. for about US$ 137 million. The transaction is expected to be completed in July and be slightly additive to Avery earnings in 1999, Stimsonite said in a statement. The definitive merger agreement calls for Avery to pay US$ 14.75 per Stimsonite share. The acquisition will be accounted for as a purchase and is expected to be funded with debt. Holders of about 20% of Stimsonite“s shares have agreed to tender their shares in response to Avery“s offer. Stimsonite“s proprietary microreplication technology platform will complement Avery“s capabilities in pressure-sensitive adhesives, “enabling us to create and develop a variety of innovative new products and applications,” said Philip Neal, chief executive officer of Avery. “Stimsonite“s strong brand name and reputation for high performance, innovative reflective products for the US$ 1.5 billion worldwide highway safety industry will significantly strengthen our existing reflective films business, and will provide us with a greatly expanded product line and distribution network. In addition, Stimsonite“s microreplication technology has extensive applications beyond the highway safety industry including home entertainment, computers, architectural lighting, medical products and textiles,” Neal said. Stimsonite is a manufacturer and marketer of reflective safety products for the transportation industry. It had 1998 sales of US$ 87.4 million, net income of US$ 4.9 million, and cash flow from operations of US$ 6.3 million. Based in Pasadena, California, Avery Dennison had 1998 sales of US$ 3.5 billion.