Avery Dennison Acquires Vestcom
05 August 2021: Avery Dennison announced it has signed an agreement to acquire Vestcom, a provider of pricing and branded labeling solutions for retailers and consumer packaged goods companies. Avery purchases the business for $1.45 billion in a cash transaction, subject to certain closing and post-closing adjustments. Vestcom uses data management capabilities to streamline store-level data and deliver item-specific, price-integrated messaging at the shopper’s point of decision. The acquisition is expected to close in the third quarter of 2021, subject to regulatory approvals and other customary closing conditions.
Vestcom is headquartered in Little Rock, Arkansas, with roughly $400 million in annual revenue. The company has 11 U.S. production facilities and approximately 1,200 employees, with sales across multiple U.S. retail channels, including grocery, drug, and dollar stores. Vestcom’s solutions include pre-cut, pre-sorted self-adhering shelf labels; shelf-edge planogram displays; signage kits and branded marketing displays.
“Vestcom is a high-performing business that is a near adjacency to RBIS [Retail Branding and Information Solutions],” says Mitch Butier, Avery Dennison’s chairman, president, and CEO. “We look forward to welcoming them into the Avery Dennison team.”
Deon Stander, VP/general manager, RBIS, adds, “Vestcom’s relationships and solutions, in combination with our own, will complement our strategy to accelerate Intelligent Label adoption beyond apparel. We look forward to learning from the Vestcom team and working together to drive significant value for all our stakeholders.”
“Today’s announcement marks a significant milestone in the history of Vestcom,” says John Lawlor, chairman/CEO of Vestcom. “And we look forward to bringing our expertise and data integration capabilities to new channels and markets with Avery Dennison. I am extremely proud of what we have accomplished, and I look forward to this next chapter in our growth trajectory.”