Avery Dennison acquires Acpo pressure-sensitive label films specialist for US$87.6M
06 Jan 2021 --- US-based labeling and functional materials specialist Avery Dennison is acquiring Acpo, a leader in pressure-sensitive polypropylene and polyester overlaminates for the label and flexible packaging markets.
The purchase, priced at US$87.6 million, includes the majority of Acpo’s assets, such as coating, finishing and distribution operations at its Oak Harbor, Ohio, headquarters, as well as three finishing and distribution sites at other US locations.
Mark Pickner, director of M&A at Avery Dennison Label and Graphic Materials, North America, tells PackagingInsights what the company plans to achieve through the acquisition.
“We will create a new portfolio and unique capabilities in the self-wound (linerless) overlaminate space.”
“This represents a significant and strategic complement to our current portfolio and will add value to our products for customers,” he asserts.
Mitch Butier, Avery Dennison’s chairman, says the acquisition of Acpo will further strengthen the company’s leadership in the core label materials industries.
Acpo has been manufacturing self-wound laminate materials, which aid packaging and industrial labeling with strong adhesives and protective coatings, for the past 32 years.
Avery Dennision’s US$87.6M acquisition includes Acpo’s coating, finishing and distribution operations at its Ohio headquarters.
The company reports annual sales of over US$60 million.
Avery Dennison pioneers circularity labels
Avery Dennison has long been a pioneer of environmental sustainability in the labeling industry.
In 2019, the company showcased a range of eco-friendly solutions to common labeling applications as part of its “Sustainable World” exhibit at Labelexpo Europe in Brussels, Belgium.
The products included recycled content liners, recycled facestocks and clean flake adhesive technology.
The supplier also launched a range of paper facestocks for wine, with 30 to 100 percent recycled content.
Last year, Avery Dennison joined the world’s first consortium to promote global recycling for the self-adhesive labeling industry. The company is included in a steering committee for the project, along with six other major packaging companies.
Meanwhile, Circular Economy for Labels (CELAB) is working to secure matrix and release liner recycling technology for 70 percent of the industry by 2025.
CELAB is aiming to ensure the 1.6 tons of label liner material sold globally each year is recycled. This is a significant industry challenge as collection and technology are often insufficient to deal with the mix of paper and silicon typically used.
By Louis Gore-Langton
