Avery Dennison Announces Completion of Two Strategic Acquisitions
Press release from the issuing company
PASADENA, Calif.--Nov. 5, 2002--Avery Dennison Corporation announced today that it has completed two acquisitions to expand its global business serving the apparel and retail industries. The Company announced definitive agreements on September 23 to acquire RVL and L&E, both privately held companies.
"RVL and L&E are known for design, marketing and manufacturing strengths that are a perfect complement to our Retail Information Services business," said Philip M. Neal, chairman and chief executive officer of Avery Dennison. "We look forward to the excellent opportunities that these two operations bring to Avery Dennison."
Based in Westlake Village, Calif., RVL is a global provider of brand identification products to apparel manufacturers and retailers for their private label programs and 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. L&E, based in Greensboro, N.C., is RVL's key printing partner and offers a broad range of offset and flexographic printing products tailored to the specific needs of the apparel industry.
Following completion of these transactions, consolidated revenues for the two companies on an annualized basis are expected to be approximately $200 million. The acquisitions are expected to have a modestly accretive impact on earnings in 2002.
The operations of the acquired companies will become part of Avery Dennison's Retail Information Services business. The expanded Retail Information Services business is expected to generate annual sales of more than $500 million.
"The combination of Avery Dennison's growing Retail Information Services business with the operations of RVL and L&E will provide apparel manufacturers and retailers with a comprehensive range of products and services that offer a total global solution for their entire supply chain, including a full array of brand identification and data management tools," said Neal. "As we significantly expand our capabilities serving the important apparel and retail markets, these acquisitions provide us with an excellent opportunity to further strengthen this key business.
"Integration teams are moving forward immediately with plans to combine the operations of RVL and L&E with our Retail Information Services business. We welcome the more than 1,200 new employees who are joining Avery Dennison as a result of the acquisitions, and we look forward to the talent and expertise that they bring to the Company," said Neal.
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