Avery Dennison to acquire Mactac Europe for EUR200 mn

Glendale, California –headquartered Avery Dennison has announced a definitive agreement to acquire the European business of Mactac from Platinum Equity, a California-based private equity firm for the purchase price of EUR200 million including assumed debt. With 2015 year-end run-rate revenues of EUR147 million, or approximately US$170 million, and approximately 470 employees, the business is a leading manufacturer of high quality pressure-sensitive materials, serving several high-value segments, including graphics, specialty labels and industrial tapes. Mactac’s core product lines complement Avery Dennison’s existing graphics portfolio.

“The acquisition of Mactac Europe enhances our competitiveness in high-value graphics, where we have sustained above-average growth over the past few years,” said Dean Scarborough, Avery Dennison chairman and CEO. “Known for high product quality and outstanding service, Mactac complements our existing business with a strong brand and loyal customer base, expanding our product offering, capabilities, and distributor network.”

With a manufacturing facility in Soignies, Belgium, along with sales offices and warehouses in Europe and Asia, the Mactac business expands Avery Dennison’s global footprint and provides needed capacity to support its growth.

Through export sales, Mactac Europe also serves customers in South America, Asia Pacific, the Middle East, and North Africa. The transaction excludes the Mactac business in the US, Canada and Mexico and its North American exports.

Avery Dennison will maintain the Mactac brand for graphic films, building on its existing strengths and customer relationships.

The acquisition will be funded by Avery with existing cash and credit facilities. The acquisition is expected to close within three months, subject to customary conditions and approvals.