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Avery Dennison Finalizes Paxar Acquisition, Paxar Introduces New Products

Pasadena, Calif.-based Avery Dennison Corp. has finalized its acquisition of Paxar Corp., White Plains, N.Y., following approval by Paxar’s shareholders at their recent annual meeting. Avery Dennison acquired the company for $30.50 per share in a transaction worth $1.34 billion.

Paxar will be rolled into Avery Dennison’s Retail Information Services (RIS) business. The combined businesses are expected to make up nearly 24 percent of Avery Dennison’s total revenues — the RIS segment accounted for just 12 percent before the acquisition.

Terry L. Hemmelgarn has been named group vice president, RIS. His management team will include Paxar and RIS leadership groups.

“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,” said Dean Scarborough, president and CEO, Avery Dennison.

In other Paxar news, the company has introduced the HS70 TRR roll-to-roll automatic heat-transfer machine for garment labeling. Designed for table-top use, the applicator features a Teflon® coating so that labels are transferred onto the receiving material cleanly; a short dwell time of 0.5 to 4 seconds to seal a label to an in-process fabric or finished garment; the option of heating both top and bottom, reducing seal time; and easy threading with Paxar’s patented self-centering mechanism, among other features.

"In designing the HS70 TRR applicator, we took into account the need for manufacturers and contractors to increase their speed and responsiveness to the market for heat transfers," said Susan Guerin, president, Americas Apparel Group, Paxar. "This meant providing a reliable tool that would help them build competencies at their production sites, offer ease of use and manufacturing flexibility, and reduce operating costs. We're very excited about the great value that this solution can offer our customers."

In addition, Paxar has made available woven labels and woven-edge tapes made from recycled polyester yarns and organic cottons. The environmentally-friendly labels meet Federal Trade Commission guidelines for recycled products in conserving petroleum resources and reducing energy consumption.

June 19, 2007