Avery Dennison Completes Acquisition of Paxar

    PASADENA, CALIF., June 15 /CNW/ - Avery Dennison Corporation (NYSE:  AVY)
announced that it completed its acquisition of Paxar Corporation today
following the approval of the transaction by Paxar's shareholders at its
Annual Meeting on June 14, 2007.

    "This acquisition will strengthen a dynamic and important part of our
business," said Dean Scarborough, president and chief executive officer of
Avery Dennison. "The combination with Paxar expands our presence in the
growing retail and brand identification market, enabling us to provide better
products and services to our customers and allowing us to more quickly tap
into new segments of the market -- including retailers serving local customers
in emerging markets such as China and India."

    On March 22, 2007, Avery Dennison announced a definitive agreement to
acquire Paxar for $30.50 per share in a cash transaction valued at
approximately $1.34 billion.

    With the acquisition of Paxar, Avery Dennison's Retail Information
Services (RIS) business is expected to represent about 24 percent of Avery
Dennison's revenues - up from 12 percent before the combination. Paxar
reported sales last year of $881 million. Avery Dennison said it will provide
additional information on the anticipated financial benefits of the
transaction, including expected sources and timing of cost synergies, during
its regularly scheduled quarterly earnings release on July 24, 2007.

    Rob van der Merwe, chairman, president and chief executive officer of
Paxar Corporation, announced that he will be leaving following the close of
the transaction. Terry L. Hemmelgarn, newly named group vice president of
Retail Information Services, will head the combined RIS Group. Hemmelgarn's
management team will consist of members of both Paxar's and RIS' leadership

    The purchase of Paxar has been initially funded through the commercial
paper market, supported by a bridge facility arranged by JPMorgan Chase Bank,
N.A. The Company remains committed to retaining a strong investment grade
credit rating and to returning its financial ratios to target levels. The
Company will work with JPMorgan Chase Bank, N.A., as arranger, and with the
rating agencies to complete the permanent financing in the coming months.

    About Avery Dennison Corporation

    Avery Dennison is a global leader in pressure-sensitive labeling
materials, office products and retail tag, ticketing and branding systems.
Based in Pasadena, Calif., Avery Dennison is a FORTUNE 500 Company with 2006
sales of $5.6 billion. Combined with Paxar, Avery Dennison now employs more
than 30,000 individuals in approximately 50 countries worldwide who develop,
manufacture and market a wide range of products for both consumer and
industrial markets. Products offered by Avery Dennison include: Fasson brand
self-adhesive materials; Avery Dennison and Paxar brand products for the
retail and apparel industries; Avery brand office products and graphics
imaging media; specialty tapes, peel-and-stick postage stamps, and labels for
a wide variety of automotive, industrial and durable goods applications.

    "Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995:

    Certain statements contained in this news release are "forward-looking
statements" intended to qualify for the safe harbor from liability established
by the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements and financial or other business targets are subject to certain
risks and uncertainties. Actual results and trends may differ materially from
historical or expected results depending on a variety of factors, including
but not limited to fluctuations in cost and availability of raw materials;
ability of the Company to achieve and sustain targeted cost reductions;
foreign currency exchange rates; worldwide and local economic conditions;
impact of competitive products and pricing; selling prices; impact of legal
proceedings, including the Canadian Department of Justice and the Australian
Competition and Consumer Commission investigations into industry competitive
practices, and any related proceedings or lawsuits pertaining to these
investigations or to the subject matter thereof or of the concluded
investigations by the U.S. Department of Justice ("DOJ") and the European
Commission (including purported class actions seeking treble damages for
alleged unlawful competitive practices, and a purported class action related
to alleged disclosure and fiduciary duty violations pertaining to alleged
unlawful competitive practices, which were filed after the announcement of the
DOJ investigation), as well as the impact of potential violations of the U.S.
Foreign Corrupt Practices Act based on issues in China; impact of
epidemiological events on the economy and the Company's customers and
suppliers; successful integration of acquisitions; financial condition and
inventory strategies of customers; timely development and market acceptance of
new products; fluctuations in demand affecting sales to customers; and other
matters referred to in the Company's SEC filings.

    Forward looking statements pertaining to Avery Dennison's acquisition and
integration of Paxar include statements relating to expected synergies, cost
savings, timing, and execution of integration plans. Risks, uncertainties and
assumptions pertaining to the transaction include the possibility that the
market for and development of certain products and services may not proceed as
expected; that the Company is unable to successfully execute its integration
strategies, or achieve planned synergies and cost reductions, in the time and
at the cost anticipated; acquisition of unknown liabilities; effects of
increased leverage; and other matters that are referred to in the Company's
SEC filings.

    The Company believes that the most significant risk factors that could
affect its ability to achieve its stated financial expectations in the
near-term include (1) the impact of economic conditions on underlying demand
for the Company's products; (2) the impact of competitors' actions, including
expansion in key markets, product offerings and pricing; (3) potential adverse
developments in legal proceedings and/or investigations regarding competitive
activities, including possible fines, penalties, judgments or settlements; and
(4) the ability of the Company to achieve and sustain targeted productivity

    For a more detailed discussion of these and other factors, see "Risk
Factors" and "Management's Discussion and Analysis of Results of Operations
and Financial Condition" in the Company's Form 10-K filed on February 28, 2007
with the Securities and Exchange Commission. The forward-looking statements
included in this news release are made only as of the date of this news
release, and the Company undertakes no obligation to update the
forward-looking statements to reflect subsequent events or circumstances.

For further information:

For further information: Avery Dennison Corporation Media Relations:
Laurence J. Dwyer (available 24 hours) 626-304-2014 626-318-2263 (cell)
communications@averydennison.com or Erwin Zijlstra (In Europe) 0031 (0) 71-
579 4113 +31 (0) 6 100 26826 (cell) or Investor Relations: Cynthia S. Guenther
626-304-2204 investorcom@averydennison.com

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