Avery Dennison has signed an agreement to acquire Vestcom, a privately held pricing and branded labeling solution provider, for $1.45 billion in a cash transaction subject to certain closing and post-closing adjustments. Vestcom uses data management capabilities to synthesize and streamline store-level data and deliver item-specific, price-integrated messaging at the shopper’s point of decision.
Vestcom has 11 U.S. production facilities and approximately 1,200 employees, with sales across multiple U.S. retail channels including grocery, drug and dollar. Vestcom’s solutions include stackz pre-cut, pre-sorted self-adhering shelf labels; shelfStrips shelf-edge planogram displays; adSigns signage kits; and shelfAdz branded marketing displays.
“Vestcom is a high-performing business that is a near adjacency to [Avery Dennis RBIS],” said Mitch Butier, Chairman, President and CEO at Avery Dennis in a statement. “With this acquisition, we are expanding our position in high-value categories and adding complementary channel access and data management capabilities that have the potential to further accelerate our Intelligent Labels strategy.”
“Today’s announcement marks a significant milestone in the history of Vestcom,” “The capabilities of Avery Dennison will enable Vestcom to further accelerate innovation and continue delivering high-value solutions that drive sales and productivity for retailers and CPGs,” said John Lawlor, Chairman and CEO of Vestcom in a statement. “We look forward to bringing our expertise and data integration capabilities to new channels and markets with Avery Dennison.”
The acquisition is expected to close in Q3 2021, subject to regulatory approvals and other customary closing conditions.