“In addition, OCP will build on 3M’s strong and long-standing customer partnerships worldwide.”
The Office and Consumer Products business of Avery Dennison is one of the world’s leading suppliers of office and education products, including labels, binders, presentation products, filing and indexing products, writing instruments, and other office and home organization products. OCP also includes the Avery, HI-LITERS, and Marks-A-Lot brands in the U.S., Canada, Germany, France, United Kingdom, Australia, New Zealand, and several other countries.
Sales in 2011 are estimated to be $765 million with EBITDA of $95 million.
Adding OCP will increase 3M’s scale and broaden its global presence in office, education and consumer products. The combined business will continue to invest in product innovation, category management and business and supply chain analytics, to provide retailers and consumers with superior products and shopping experiences.
“This acquisition complements our global business, which includes our iconic Post-it and Scotch brands, and will allow us to better serve our customers with accelerated product innovation,” said Bill Smith, vice president and general manager, 3M Office Supplies Division. “In addition, OCP will build on 3M’s strong and long-standing customer partnerships worldwide.”
On a GAAP-reported basis, 3M estimates the acquisition will be approximately $0.06 dilutive to earnings per share in the first 12 months following closing. Excluding purchase accounting adjustments and anticipated integration expenses, 3M estimates the acquisition will be $0.03 accretive to earnings over the same period.
OCP is headquartered in Brea, Calif., and employs approximately 3000 people globally. The transaction is expected to be completed in the second half of 2012, subject to customary closing conditions including any necessary regulatory approvals.
3M Corp
www.3M.com.au
