Avery Dennison to acquire Hanita Coatings

US labelling company Avery Dennison Corporation is to acquire Hanita Coatings, an Israeli pressure-sensitive materials manufacturer of speciality films and laminates from Kibbutz Hanita Coatings and Tene Investment Funds for the purchase price of US$75 million, subject to customary adjustments.

Headquartered in Israel with sales and distribution facilities in the US, Germany, China and Australia, Hanita Coatings develops and manufactures coated, laminated, and metallised polyester films for a range of industrial and commercial applications.

Hanita Coatings’ window films are used in architecture and automotive aftermarkets; its top-coated polyester films are used in the manufacture of labels; and its ultra-high barrier films form part of insulation systems used in refrigeration, buildings and cold chain packaging.

“We see clear opportunities to leverage our strong global organization and established brand to help accelerate Hanita Coatings’ product commercialisation around the world,” said Mitch Butier, Avery Dennison President/CEO. “In addition to expanding our product portfolio and providing new growth opportunities, Hanita Coatings’ culture of innovation and long-standing commitment to R&D are a strong fit with our own company’s 80-year history of innovation in materials science.”

With 2015 sales of roughly US$50 million, Hanita Coatings currently employs more than 220 employees, most of whom are located at the company’s headquarters in Israel’s Western Galilee. The 33-year-old company generates sales in more than 40 countries.

“We are excited to be joining forces with such a global industry leader and see it as a great opportunity for Hanita Coatings to realise its full potential,” added Oved Shapira, CEO, Hanita Coatings. “I am convinced that Avery Dennison’s resources, distribution channels, and brand will benefit our customers across all our markets, enabling continued innovation through future investment and improved manufacturing efficiency.”

Avery Dennison expects that completion of the transaction will take up to a few months, subject to customary closing conditions and approvals.

Avery Dennison has operations in more than 50 countries and more than 25,000 employees worldwide. The company reported sales of US$6 billion in 2015.

(PRA)