Avery Dennison Corporation (ticker: AVY, exchange: New York Stock Exchange (.N))
News Release -
Avery Dennison to Acquire Jackstadt, Global Self-Adhesive Materials ManufacturerPASADENA, Calif. & WUPPERTAL, Germany, Sep 7, 2001 (BUSINESS WIRE) -- Avery
Dennison Corporation and Jackstadt GmbH today announced a definitive agreement
for Avery Dennison (NYSE/PCX: AVY) to acquire Jackstadt's pressure-sensitive
adhesive materials business, which had consolidated revenues in 2000 of DEM 888
million, or approximately $400 million. Jackstadt is a highly respected
manufacturer of pressure-sensitive adhesive materials based in Germany.
"The combination of our two companies, both industry pioneers, will create value
for Avery Dennison shareholders, while providing substantial benefits for
customers and new opportunities for employees of both companies. The combined
company will continue to invest in the development of new products and enhanced
services, benefiting both Avery Dennison and Jackstadt customers on a global
basis. We will be able to build on the outstanding reputations of quality and
service enjoyed by both Avery Dennison's Fasson brand and Jackstadt's JAC brand
of pressure-sensitive products," said Philip M. Neal, chairman and chief
executive officer of Avery Dennison.
"With strong, longstanding customer relationships, excellent technology and a
tradition of quality products, Jackstadt will enhance Avery Dennison's core
pressure-sensitive materials business," Neal continued. "Jackstadt will
complement our activities in key areas -- Asia, Latin America and Europe -- and
will especially enhance our ability to grow in Eastern Europe."
The all-cash transaction is expected to be accretive to Avery Dennison earnings
by the second year after the transaction closes. Other terms of the transaction
were not disclosed, pending completion of the acquisition.
The transaction is subject to a number of closing conditions, including
regulatory approvals at the national level and is expected to close during the
fourth quarter of 2001. During this time, the two companies will continue to
"Our management and employees have built one of the truly prominent companies in
our industry over the past 50 years," said Dr. h.c. Werner Jackstadt, chairman
of Jackstadt GmbH. "We are pleased that the JAC brand name, headquarters and
business operations will play a continuing role in Avery Dennison's future."
Jackstadt, which has generated approximately 10.7 percent compound annual growth
in revenues since 1996, offers more than 500 pressure-sensitive materials
products to its global customer base. With headquarters in Wuppertal, Germany,
which is located near Dusseldorf, Jackstadt generates approximately 80 percent
of its sales outside of Germany.
The companies said the acquisition is expected to accelerate revenue growth,
while achieving cost savings as a result of greater efficiencies in purchasing
and manufacturing, as well as supply, distribution and information systems. The
combination is also expected to benefit from greater efficiencies in working
capital management, leading to improved cash flow.
Jackstadt, the world's largest privately held manufacturer of self-adhesive
materials, was founded in 1920 as a fine paper wholesale business supplying the
German printing industry. The company began producing self-adhesive papers in
1949. Today, Jackstadt operates 10 manufacturing facilities worldwide and
employs a workforce of 2,140 employees, approximately half of which are based in
Germany. The company serves customers through subsidiaries in 20 countries
around the world.
Avery Dennison is a global leader in pressure-sensitive technology and
innovative self-adhesive solutions for consumer products and label materials.
Founded in 1935, the company had 2000 sales of $3.9 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, peel-and-stick postage stamps, battery labels,
reflective highway safety products, automated retail tag and labeling systems,
and specialty tapes and chemicals. Based in Pasadena, Calif., the company
employs 17,900 individuals in 200 manufacturing and sales facilities in 40
countries around the world.
Certain information presented in this news release may constitute
"forward-looking" statements. These statements are subject to certain risks and
uncertainties. Actual results and trends may differ materially from historical
or expected results depending on a variety of factors, including but not limited
to price and availability of raw materials, foreign exchange rates, worldwide
and local economic conditions, successful integration of acquired companies,
financial condition of customers, fluctuations in demand affecting sales to
customers and other matters referred to in the company's SEC filings.
CONTACT: Avery Dennison, Pasadena
Charles E. Coleman, 626/304-2014
Cynthia S. Guenther, 626/304-2204