3M Still Pursuing Avery Dennison Purchase Despite Department of Justice Antitrust Lawsuit Threat
The purchase was originally expected to occur in the second half of this year. According to Citigroup analyst Deane Dray, the deal would combine the two largest label makers in the world. In addition to labels, 3M would acquire Avery Dennison's office products like binders, presentation products and writing instruments, including the Avery, HI-LITERS and Marks-A-Lot brands.
"We're committed to getting the transaction done," said Dean Scarborough, CEO of Avery Dennison. "I would characterize this as a hiatus and certainly not a movement away from completing this transaction." Bloomsberg Businessweek reports that, if the deal is salvaged, it probably will not be completed in 2012.
3M had revenues of $27 billion in 2011, with worldwide office supplies sales of $1.7 billion. Avery Dennison's revenues last year were $6 billion in total, with $765 million for the OCP group.