Avery Dennison Corp. has agreed to acquire pressure-sensitive materials manufacturer Hanita Coatings RCA Ltd.
Avery Dennison, headquartered in Glendale, will pay $75 million to purchase the Israeli firm from Kibbutz Hanita Coatings and Tene Investment Funds. The transaction is expected to close within the next few months, according to a press release from the company.
“In addition to expanding our product portfolio, Hanita Coatings’ longstanding commitment to R&D is a strong fit with our own company’s 80-year history of innovation,” Avery Dennison Chief Executive Mitch Butier said in a prepared statement. “We see clear opportunities to leverage our established brand to help accelerate Hanita Coatings’ product commercialization around the world.”
Hanita Coatings’ specialty films and laminates are used in architecture and automotive aftermarkets, insulation systems and the construction of labels. The company generated around $50 million in sales last year and does business in more than 40 countries.
Avery Dennison announced the development late Monday evening. On Tuesday, the company’s stock fell 18 cents, or less than a percent, to close at $72.53 on the New York Stock Exchange.