The two businesses had combined revenues of approximately $910 million with an estimated adjusted EBITDA of $110 million in the calendar year of 2012. The transaction requires regulatory approval but subject to that is expected to close by mid-2013.
"This acquisition has the potential to transform our company at many levels,” Geoffrey Martin, president and CEO of CCL Industries, said. “We are acquiring the Avery brand as part of the transaction to build on the franchise established for many decades for labels and other printable media that consumers and businesses use in digital computer printers around the world. In addition, we are significantly expanding our CCL Label market sectors with our entry into the North American durable goods market.
“This acquisition is the largest in CCL's history and takes the company's pro-forma annual revenue above $2 billion for the first time,” Mr. Martin added. “We know both businesses well and have admired the people and the products for many years. We expect the transaction to be accretive on an earnings per share basis in 2014 and beyond as the valuation falls well within the established financial parameters for CCL's acquisitions in the label industry over the last decade."