Avery Dennison, Buyer of Hanita CoatingsSeptember 7th, 2016 by Katherine Coig
According to the Calcalist financial news website, Avery Dennison, a California-based manufacturer, has agreed to buy Hanita Coatings from the kibbutz and the Tene investment fund for $75 million.
The report states that the company has signed a memorandum of understanding and is finishing its due diligence, after which it will pay $66 million. The remaining $9 million will be paid upon reaching certain milestones, according to Calcalist.
Avery Dennison is a manufacturer of pressure-sensitive adhesive materials. It will acquire access to Hanita’s patented technology that allows the company to have high-quality solutions equivalent to sputtering (a process that applies an alloy coating to achieve superior film performance), but at a low cost. The technology allows the company to cover three to five meters per second, a rate much faster than sputtering.
Hanita also has an extensive portfolio in the print business. The company supplies top-coated polyester label face films to label stock manufacturers, which includes security, high durability and protective label face films.
Avery Dennison, valued to be a $6 billion dollar company, is headquartered in Pasadena, Calif., about a 35 mile drive from HanitaTek’s (the U.S. distribution arm) warehouse in Anaheim, Calif. The warehouse, which opened earlier this year, expanded the company’s distribution reach on the West Coast to support Hanita’s growing customer base.
This isn’t the first action Avery Dennison took this year to expand its global presence. In April, the company acquired Mactac Europe from Platinum Equity, a small California-based private equity firm, to enhance its position in the European graphics market. With Mactac’s manufacturing facility in Soignies, Belgium, along with sales offices and warehouses in Europe and Asia, Avery Dennison is continuing to spread pancontinental.
Hanita representatives have yet to make a comment regarding the validity of the report.