3M to Buy Avery Dennison Unit for $550M
3M Company announced Tuesday that it has agreed to buy the office and consumer products business of Pasadena, California-based Avery Dennison Corporation for $550 million in cash.
Maplewood-based 3M, which already offers an extensive line of office and consumer supplies, said the acquisition will increase its scale and broaden its global presence in the sector.
The deal is expected to close in the second half of 2012.
Avery Dennison's office and consumer products include labels, binders, presentation products, filing and indexing items, and highlighters. The unit's 2011 sales were approximately $765 million, according to 3M. The unit is headquartered in Brea, California and employs 3,000 people worldwide.
“This acquisition complements our global business, which includes our iconic Post-it and Scotch brands, and will allow us to better serve our customers with accelerated product innovation,” Bill Smith, vice president and general manager of 3M's office supplies division, said in a statement. “In addition, [the new business] will build on 3M's strong and long-standing customer partnerships worldwide.”
3M is Minnesota's fifth-largest public company based on its 2010 revenue, which totaled $26.7 billion.