Avery Dennison Acquires Vestcom For $1.45B Cash

Avery Dennison Corp AVY has agreed to acquire Vestcom, a privately held provider of pricing and branded labeling solutions at the shelf edge for retailers and consumer packaged goods companies, for $1.45 billion in a cash transaction.
Vestcom uses data management capabilities to synthesize and streamline store-level data and deliver item-specific, price-integrated messaging at the shopper's point of decision.
It has roughly $400 million in annual revenue and 11 U.S. production facilities, and approximately 1,200 employees, with sales across multiple U.S. retail channels.
This acquisition is accretive to Avery Dennison's 2022 EPS, net purchase accounting amortization, and financing costs. It is expected to close in 3Q21.
Avery Dennison expands its position in high-value categories and adds complementary channel access and data management capabilities that further accelerates its Intelligent Labels strategy.
Avery Dennison's cash and cash equivalents held were $344.8 million as of July 3, 2021.
Price action: AVY shares are trading higher by 3.47% at $212.16 on the last check Wednesday.