Avery Dennison to acquire Mactac Europe
Business acquisition enhances Avery Dennison’s position in European graphics markets.
April 27, 2016
by Canadian Packaging staff
GLENDALE, CA—Avery Dennison has agreed to acquire the European business of Mactac from Platinum Equity, a California-based private equity firm, for the purchase price of approximately CDN $285 million including assumed debt.
With 2015 year-end run-rate revenues of approx. CDN $209.5 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,” says Avery Dennison chairman and chief executive officer Dean Scarborough. “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 U.S., 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.
“We have been very impressed with what Mactac’s team has accomplished and believe the combination of the two companies’ talented employee bases will create a stronger European team with expanded capabilities and growth opportunities,” says Avery Dennison president and chief operating officer Mitch Butier. “We plan to continue operating Mactac’s manufacturing facility in Soignies, Belgium and to make the facility and its people a key driver of Avery Dennison’s future innovation and growth in Europe.”
Platinum Equity partner Louis Samson adds: “Mactac’s European business has come a long way with the successful restructuring of its operations and product portfolio. It is today fundamentally strong and well positioned to join Avery Dennison and take this next step in the company’s evolution. The company’s progress and recent success is a testament to its strong leadership team and dedicated employees. We are proud of everything Mactac Europe has accomplished under Platinum Equity’s ownership.”
Samson notes that his team now remains focused on partnering with Mactac’s North American leadership to continue driving its growth and profitability.
Avery Dennison will fund the acquisition with existing cash and credit facilities. The acquisition is expected to close within three months, subject to customary conditions and approvals.
About Avery Dennison
Avery Dennison is a global leader in labeling and packaging materials and solutions. The company’s applications and technologies are an integral part of products used in every major market and industry. With operations in more than 50 countries and more than 25,000 employees worldwide, Avery Dennison serves customers with insights and innovations that help make brands more inspiring and the world more intelligent. Headquartered in Glendale, California, the company reported sales from continuing operations of $6.0 billion in 2015. Learn more about the company at www.averydennison.com.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with a portfolio of approximately 25 operating companies that serve customers around the world. Platinum Equity specializes in mergers, acquisitions and operations—a trademarked strategy it calls M&A&O–acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 20 years Platinum Equity has completed more than 175 acquisitions. Moe information can be found at www.platinumequity.com.