Avery Dennison announces 550 million dollar agreement with 3M

Avery Dennison Corporation has signed a definitive agreement to sell its office and consumer products business (OCP) to 3M for 550 million dollars in cash. The transaction is subject to customary closing conditions and regulatory approvals and is expected to be completed in the second half of 2012.

‘The sale of our office and consumer products business to 3M presents the best opportunity to maximize OCP’s value for Avery Dennison’s shareholders, and complements 3M’s global portfolio,’ said Dean A. Scarborough, Avery Dennison chairman, president and chief executive officer. ‘Our industry-leading pressure-sensitive materials and retail branding and information solutions businesses, combined with our strong balance sheet, make us well positioned for profitable growth and increased return of cash to shareholders.’

Avery Dennison intends to use the proceeds from the transaction primarily to reduce debt, make additional pension contributions, and repurchase shares. It will not negatively impact Avery Dennison's common stock dividend, says the company.