Avery Dennison Corporation has announced it has completed the acquisition of Vestcom for the purchase price of $1.45 billion, subject to customary adjustments. Vestcom is now an Avery Dennison company.

Vestcom is a 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.

Vestcom is headquartered in Little Rock, AK, with roughly $400 million in annual revenue. The company has 11 US production facilities and approximately 1,200 employees, with sales across multiple US 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-growth, high-margin business, with a strong track record across cycles that will accelerate the Avery Dennison portfolio shift to high-value categories. The acquisition is expected to be accretive to the company’s 2022 EPS, net of purchase accounting amortization and financing costs.

“Vestcom is a high-performing business that is a near adjacency to RBIS,” says 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.”

“Vestcom is a strong strategic fit for RBIS with a well-established base of long-term, market-leading customers,” comments Deon Stander, vice president and general manager, RBIS. “It has a long history of continuous innovation and delivering products and services with strong value propositions and clear, measurable return on investment for its customers. It has consistently adhered to a proven growth strategy executed by an excellent management team. Vestcom’s relationships and solutions, in combination with our own, will complement our strategy to accelerate Intelligent Label adoption beyond apparel. We look forward to learning from the Vestcom team, and working together to drive significant value for all our stakeholders.”