Global adhesive labels giant Avery Dennison has paid €200m ($A306m) to acquire the European business of major competitor Mactac from US private equity firm Platinum Equity.
Mactac is a leading manufacturer of pressure-sensitive materials, serving several high-value markets, including graphics, specialty labels and industrial tapes, and employs a staff of about 470.
“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, chairman and CEO, Avery Dennison. "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 capacity to support its growth. Through export sales, Mactac Europe also serves customers in South America, Asia Pacific, the Middle East, and North Africa. Avery Dennison will maintain the Mactac brand for graphic films. The transaction excludes the Mactac business in the U.S., Canada and Mexico and its North American exports.
Australian paper merchant K.W.Doggett last year become a significant supplier of Avery Dennison wide format products in Australia. Doggett is also a distributor for Avery Dennison’s self adhesive sheets range for the offset and screen printing markets.
“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,” said Mitch Butier, president and COO, Avery Dennison. “We plan to continue operating Mactac’s manufacturing facility in Soignies 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 said his team would now focus on partnering with Mactac’s North American leadership to continue driving its growth and profitability: “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 deal is expected to close within three months, subject to approvals.