Avery Dennison has agreed to acquire Hanita Coatings, a pressure-sensitive materials manufacturer of specialty films and laminates from Kibbutz Hanita Coatings and Tene Investment Funds for the purchase price of 75 million USD, subject to customary adjustments.
Headquartered in Israel with sales and distribution facilities in the United States, Germany, China and Australia, Hanita Coatings develops and manufactures coated, laminated and metallized polyester films for a range of industrial and commercial applications, all of which require high performance and superior quality.
Hanita Coatings’ window films are used in architecture and automotive aftermarkets; its top-coated polyester films are used in the manufacture of durable labels, and its ultra-high barrier films form part of insulation systems used in refrigeration, buildings and cold chain packaging.
‘We see clear opportunities to leverage our strong global organization and established brand to help accelerate Hanita Coatings’ product commercialization around the world,’ said Mitch Butier, Avery Dennison president and CEO. ‘In addition to expanding our product portfolio and providing new growth opportunities, Hanita Coatings’ culture of innovation and long-standing commitment to R&D are a strong fit with our own company’s 80-year history of innovation in materials science.’
With 2015 sales of roughly $50 million, Hanita Coatings currently employs more than 220 employees, most of whom are located at the company’s headquarters in Israel’s Western Galilee. The 33-year-old company generates sales in more than 40 countries.
‘We are excited to be joining forces with such a global industry leader and see it as a great opportunity for Hanita Coatings to realize its full potential,’ added Oved Shapira, CEO, Hanita Coatings. ‘I am convinced that Avery Dennison’s resources, distribution channels, and brand will benefit our customers across all our markets, enabling continued innovation through future investment and improved manufacturing efficiency.’
Avery Dennison expects that completion of the transaction will take up to a few months, subject to customary closing conditions and approvals.