3M Buys Avery Dennison Office Products for $550 Million; Deal Does Not Affect Fort Wayne Location

It was announced today that 3M and Avery Dennison have reached agreement for 3M to acquire Avery Dennison's Office and Consumer Products Division for $550 million.

Avery Dennison maintains a facility in Fort Wayne on Independence Drive that is part of its Fasson Roll North America Division. 

Fort Wayne Observed contacted David Frail, a spokesman for Avery Dennison who told FWOb that the Fort Wayne facility would remain with Avery Dennison and will be unaffected by the 3M purchase.  Indeed, there are no Avery Dennison facilities in Indiana that would be part of the sale.

This may actually be good news for the Fort Wayne manufacturing facility as many analysts believe that shedding the office supply and consumer product sections of Avery Dennison strengthen the company by allowing it to concentrate on the higher margin industrial and commerical sector.

In its release, Dean A. Scarborough, the CEO of Avery Dennison said:

“The sale of our Office and Consumer Products business to 3M presents the best opportunity to maximize OCP’s value for Avery Dennison’s shareholders, and complements 3M’s global portfolio. Our industry-leading Pressure-sensitive Materials and Retail Branding and Information Solutions businesses, combined with our strong balance sheet, make us well positioned for profitable growth and increased return of cash to shareholders.”

There has been substantial consolidation among office supply makers in recent years.  Part of that consolidation has been driven by big box office supply stores like Office Depot, Staples and OfficeMax which put pressure on the margins that office supply manufacturers can charge.

3M has a strong office supply division which includes products such as Post-It Notes and Scotch brand tape.