Benzinga | Jul 28, 2021 03:15PM EDT

Avery Dennison Acquires Vestcom For $1.45B Cash

* Avery Dennison Corp (NYSE: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.