Avery Dennison Exec Talks Hanita AcquisitionMarch 8th, 2017 by Katherine Coig
News broke late last week that the California-based manufacturer Avery Dennison has completed the acquisition of Hanita Coatings, a film manufacturer located in northern Israel, from Kibbutz Hanita and Tene Investment Funds for $75 million, as Avery Dennison continues its pancontinental expansion. In an exclusive interview with Window Film magazine, Bill Podojil, Avery Dennison’s senior business director of graphic solutions within the Materials Group North America (NA), gave insight on the acquisition, as well as where the future of the new Avery Dennison Hanita is headed.
“Hanita fits really well into our high-value section,” says Podojil. “Its products span from high performance materials to graphics and energy efficiency. Hanita’s always been seen as a technology innovator, so when we looked for companies to partner with or acquire, it was at the top of our list.”
Avery Dennison will now have 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 much lower cost. The technology allows the company to cover three to five meters per second, a rate much faster than sputtering.
Expanding on this, Podojil exclaims, “It’s a very attractive company. They have a very dedicated research and development (R&D) team—they not only keep up with technology, but they push it. They’re a very impressive team.”
Avery Dennison’s known for its graphic solutions in the automotive restyling market and, according to Podojil, the addition of Hanita’s automotive window films will leverage both brands. “We’re looking at this to be a complementary add to our color shifting wraps,” he explains. “We’ll be branding with the Hanita brand, but we haven’t quite figured out all of the details yet.” For now, Hanita will operate as Avery Dennison Hanita and remain a distinct business unit, but Podojil says they haven’t made a firm decision on the name yet, “But we’re leveraging the Avery Dennison brand and the Hanita brand, which a lot of our installers are very familiar with,” he says. “We feel it’s going to be a really good synergy for the OEM side.”
But Avery Dennison also sees a great advantage with Hanita’s architectural films. “On the architectural side, [Avery Dennison] does a lot of graphic solutions, so we also see that as a huge leveraging point,” Podojil explains. “We’re looking at not only films for privacy and decorative purposes, but [Hanita] brings energy performance, security and safety. We’re exploring how we can leverage the Hanita brand and our partnership. It’s almost like a ‘one plus one equals three’ relationship.”
Hanita hasn’t been a player in the automotive restyling market for very long, as Podojil points out, but its brand-recognition is well-known. “One of the things we found out was that the Hanita brand in North America is quite strong, especially in the architectural segment,” he explains, “a lot of dealers work with both, but Hanita just began in the automotive restyling market. It’s got great brand awareness, and we want to capitalize on that success with Hanita.”
Though the companies haven’t landed on a name under the new relationship, Podojil says they may try different approaches based on geography. “Each industry segment around the world is different, so we may play into things differently in regional approaches,” he says.
He adds that all Hanita employees will remain employed, and the Hanita headquarters in Israel will be known as Avery Dennison Israel. “This was absolutely an acquisition targeting our joint leveraging—it’s all about growth. The former CEO of Hanita is now the vice president of Avery Dennison Israel,” says Podojil. “We have no plans to change any manufacturing; we’re looking at how we can potentially increase their distribution.”
As for the future of the two companies, who’ve been working together since January, Podojil says they’re a perfect match. “I think our two teams work really well together. Hanita is equally looking into how they can leverage the Avery Dennison name,” he explains. “We’re all really looking forward to the new opportunities this will allow. Hanita’s got a great, highly professional team—just top-notch people. They’re even training us on the window film business.”