The transaction is expected to enhance Avery Dennison's ability to compete and grow in the fragmented, expanding US$15bn-plus global retail information and brand identification market.
"This combination is a terrific strategic fit," says Dean A. Scarborough, president and chief executive officer of Avery Dennison.
"Paxar's highly complementary capabilities advance our strategy to deliver exceptional products and superior service to customers at every level of the global retail supply chain, and to increase efficiency and reduce costs in a rapidly changing and increasingly competitive global marketplace.
"In addition, this acquisition will allow us to invest in product innovation and services that will serve our existing customers even better.
"Avery Dennison's Retail Information Services (RIS) business represents one of its fastest-growing units. RIS provides brand identification and supply chain management solutions primarily for manufacturers and retailers, including tag and label design and printing; inventory and shipment tracking; and data management systems.
"This combination will give us the capabilities, products and geographic reach to pursue new segments of the global retail information and brand identification market," continues Scarborough.
"These segments include retailers and manufacturers serving local customers in India and China."
Rob van der Merwe, chairman, president and chief executive officer of Paxar Corporation, says, "Combining with Avery Dennison provides substantial benefits to our customers while delivering compelling value to Paxar shareholders.
"In particular, the broader capabilities of the combined company will better meet customer demands for improved quality, product innovation and speed of delivery. "Although we understand that some jobs will be affected through the integration of our businesses, employees of the combined Company will have expanded opportunities as part of a larger organisation."
In this evolving marketplace, it is increasingly important to be close to the local manufacturing clusters, the two companies say. With their complementary geographic footprints, in particular with Paxar's greater focus on Europe, the acquisition improves the combined company's ability to serve customers in Europe, Latin America, the Middle East and Asia.
"Lower-cost production – and higher levels of quality and speed of delivery – will be crucial for winning against the local and regional competition we face at the buying office and factory levels," says Scarborough.
"This combination will benefit the factories that purchase our tickets and tags as well as the retailers and the brand owners they supply."Avery Dennison is a global leader in pressure-sensitive labeling materials, office products and retail tag, ticketing and branding systems.
Based in Pasadena, Calif, Avery Dennison is a FORTUNE 500 Company with 2006 sales of US$5.6bn.
Avery Dennison employs more than 22,000 individuals in 49 countries worldwide who apply Avery Dennison's technologies to develop, manufacture and market a wide range of products for both consumer and industrial markets.
Products offered by Avery Dennison include Avery brand office products and graphics imaging media, Fasson brand self-adhesive materials, peel-and-stick postage stamps, reflective highway safety products, labels for a wide variety of automotive, industrial and durable goods applications, brand identification and supply chain management products for the retail and apparel industries, and specialty tapes and polymers.
Paxar is a global leader in providing identification solutions to the retail and apparel industry, worldwide. Expertise in brand development, merchandising, information services and supply chain solutions enables Paxar to satisfy customer needs around the world.
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