Avery Dennison Announces Two Strategic Acquisitions
Press release from the issuing company
PASADENA, Calif.--Sept. 23, 2002--Avery Dennison Corporation announced today that it will expand its global business serving the apparel and retail industries. The Company has signed a definitive agreement to acquire RVL Packaging, Inc., a global provider of brand identification products to both apparel manufacturers and retailers for their private label programs. RVL, a privately held company, is widely recognized as one of the apparel industry's leaders in the design, marketing, manufacturing and distribution of woven and printed labels, graphic tags and specialty packaging products.
Additionally, Avery Dennison has signed a definitive agreement to acquire L&E Packaging, a privately held company and RVL's key printing partner. L&E offers a full range of offset, screen and flexographic printing products tailored to the specific needs of the apparel and retail industries. Consolidated revenues for RVL and L&E on an annualized basis are expected to be approximately $200 million, following completion of the transactions.
The operations of the two companies to be acquired will become part of Avery Dennison's Retail Information Services business, enhancing its existing data management and ticketing capabilities. The expanded Retail Information Services business is expected to generate annual sales of more than $500 million and will provide a complete brand identification and supply chain management solution for apparel manufacturers and retailers, including tag and label design and printing, inventory and shipment tracking, and comprehensive data management systems.
The acquisitions are expected to have a modestly accretive impact on earnings in 2002. The agreements are both subject to regulatory clearance and other customary closing conditions. Avery Dennison expects to close the transactions early in the fourth quarter. Terms of the agreements were not disclosed.
"The acquisition of these two exceptional companies will reinforce our strong commitment to expanding Avery Dennison's steadily growing Retail Information Services business, positioning us to build an additional core business for the Company," said Philip M. Neal, chairman and chief executive officer of Avery Dennison. "The strengths that RVL and L&E bring to Avery Dennison will enable us to provide a total global solution that meets the supply chain needs of apparel manufacturers and retailers from start to finish. We will offer U.S. and international customers the most comprehensive selection of creative design services, brand identification products, data management tools and cutting-edge supply-chain software available in today's market."
RVL Packaging, Inc., based in Westlake Village, Calif., employs approximately 700 individuals globally and operates in 23 countries. In addition to its worldwide operations, the company recently completed construction of a state-of-the-art facility in Statesville, N.C., for production of printed labels. Founded in 1978 by Robert V. Lyle, the company is known throughout the apparel and retail industries for its innovative design services, professional sales and marketing staff and high levels of customer satisfaction. Senior management at RVL will remain with Avery Dennison following completion of the acquisition.
L&E Packaging, established in 1956, is based in Greensboro, N.C., where its primary manufacturing facility is located. The company also has offset and flexographic printing operations in Hong Kong and Mexico, and currently employs approximately 560 people. L&E has earned a reputation as a premier printer of high-quality, graphic hang tags and labels for apparel, and has operated as a key supplier and partner to RVL for more than 20 years. Senior management at L&E will also continue with Avery Dennison following completion of the acquisition.
"The acquisition of RVL and L&E provides a natural fit for Avery Dennison's Retail Information Services business," said Neal. "The combination of our three operations will enable us to significantly broaden our product and service offerings in the apparel and retail industries, creating an exciting opportunity to develop another core business for Avery Dennison."
Avery Dennison is a global leader in pressure-sensitive technology and innovative self-adhesive solutions for consumer products and label materials. Based in Pasadena, Calif., the Company had 2001 sales of $3.8 billion. Avery Dennison develops, manufactures and markets a wide range of products for consumer and industrial markets, including Avery-brand office products, Fasson-brand self-adhesive materials, automated retail tag and labeling systems, peel-and-stick postage stamps, reflective highway safety products, and specialty tapes and chemicals.
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