Avery Dennison (Glendale, California) has announced that it’s it completed the acquisition of Vestcom for the purchase price of $1.45 billion (USD). Vestcom is a market-leading provider of pricing and branded labeling solutions at the shelf-edge for retailers and consumer packaged goods companies. It 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. The acquisition advances Avery Dennison’s goals and strategies – including the opportunity to accelerate the adoption of intelligent labels technology. 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 about 1,200 employees, with sales across multiple U.S. retail channels – including grocery, drug, and dollar stores. 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-growth, high-margin business, with a strong track record across cycles that will accelerate the Avery Dennison portfolio shift to high-value categories.
“Vestcom is a high-performing business that is a near adjacency to RBIS,” said Mitch Butier, Avery Dennison’s chairman, president, and CEO. “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. We look forward to welcoming them into the Avery Dennison team.”