1. Avery Dennison acquires Meridian's flooring adhesives business for $390 million. 2. Projected 2025 revenue for Meridian's business is $110 million. 3. Acquisition enhances Avery's specialty adhesives and materials science capabilities. 4. Expected to close in Q4; minimal impact on 2025 earnings. 5. Avery focuses on high-value categories through M&A strategy.
The acquisition positions AVY in a growing market, potentially enhancing future revenues. Historical acquisitions have often led to increased market confidence and valuation.
The strategic acquisition is significant for AVY's growth in adhesives, thus impacting investor sentiment positively. Revenue projections and market position enhancements contribute to its importance.
The benefits from the acquisition will manifest over several quarters as integration and cross-selling occur. Past similar deals have taken time to fully realize synergies and growth.
Avery Dennison Corporation (NYSE:AVY), a leading global materials science and digital identification solutions company, today announced it has signed a definitive agreement to acquire the U.S.-based flooring adhesives business of Meridian Adhesives Group, a global adhesives manufacturer, for the purchase price of $390 million. The acquisition is subject to certain customary closing and post-closing adjustments.
Meridian's flooring adhesives business is a leader in the development, manufacture and commercialization of specialty adhesives and coatings for the U.S. flooring industry, with projected 2025 revenue of approximately $110 million and attractive operating margins. Headquartered in Dalton, Georgia, it operates four manufacturing facilities in the United States and employs approximately 110 people.
"Avery Dennison remains sharply focused on expanding in high-value categories, both organically and through M&A," said Deon Stander, Avery Dennison president and CEO. "This acquisition will leverage our materials science capabilities, while deepening our specialty adhesives solutions, with a business that is highly regarded within the floor covering industry for its product quality, strong customer relationships and continuous innovation."
Upon completion of the transaction, the flooring adhesives business will become part of the Avery Dennison Materials Group business. The Meridian flooring adhesives business includes Taylor Adhesives, Polycom and Frontier Products' brands.
"This acquisition is an excellent fit with Materials Group," said Ryan Yost, president, Avery Dennison Materials Group. "It adds a valuable set of application-oriented solutions in high-value categories to our adhesives portfolio. We see strong cost and technology synergies that will build on our materials science capabilities, acrylic adhesive expertise and open new application opportunities for us in the flooring industry."
Ralph Grogan, commercial president of flooring, Meridian, added: "I am incredibly proud of what our teams at Taylor Adhesives, Polycom and Frontier Products have built. With Avery Dennison's backing and reach, these brands are well-positioned to continue growing and delivering even greater value to our customers."
Avery Dennison expects the transaction to close in the fourth quarter. It is not expected to have a material impact on the company's adjusted earnings per share in 2025.
Chemlink Partners, LLC and Goodwin Procter LLP advised Avery Dennison on the transaction. Piper Sandler, Moelis & Company, and Weil, Gotshal & Manges LLP advised Meridian on the transaction.
About Avery Dennison
Avery Dennison Corporation (NYSE:AVY) is a global materials science and digital identification solutions company. We are Making Possible™ products and solutions that help advance the industries we serve, providing branding and information solutions that optimize labor and supply chain efficiency, reduce waste, advance sustainability, circularity and transparency, and better connect brands and consumers. We design and develop labeling and functional materials, radio-frequency identification (RFID) inlays and tags, software applications that connect the physical and digital, and offerings that enhance branded packaging and carry or display information that improves the customer experience. Serving industries worldwide — including home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, pharmaceuticals and automotive — we employ approximately 35,000 employees in more than 50 countries. Our reported sales in 2024 were $8.8 billion. Learn more at www.averydennison.com.
About Meridian
Meridian Adhesives Group is a leading manufacturer of high-performance adhesives, providing cutting-edge solutions across electronics, flooring, infrastructure, packaging, and product assembly markets. With a strong portfolio of innovative brands, Meridian is dedicated to delivering superior adhesive technologies to meet the evolving needs of global customers.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250825924998/en/
Avery Dennison Media Contacts:
William Gilchrist
Vice President, Investor Relations
investorcom@averydennison.com
Kristin Robinson
Vice President, Global Communications
kristin.robinson@averydennison.com