Avery Dennison announced that it has signed an agreement to acquire Vestcom, a privately held market-leading provider of pricing and branded labeling solutions at the shelf-edge for retailers and consumer packaged goods companies, for $1.45 billion in a cash transaction, subject to certain closing and post-closing adjustments.

Vestcom uses data management capabilities to synthesize and streamline store-level data and deliver item-specific, price-integrated messaging at the shopper’s point of decision. The acquisition is expected to close in the third quarter of 2021, subject to regulatory approvals and other customary closing conditions.

Vestcom is headquartered in Little Rock, AR, with approximately $400 million in annual revenue. The company has 11 US production facilities and approximately 1,200 employees, with sales across multiple US retail channels, including grocery, drug, and dollar. Vestcom’s solutions include stackz pre-cut, pre-sorted self-adhering shelf labels; shelfStrips shelf-edge planogram displays; adSigns signage kits; and shelfAdz branded marketing displays.

Vestcom is a high-growth, high-margin business, with a strong track record across cycles that will accelerate the AVY portfolio shift to high-value categories.

“Vestcom is a high-performing business that is a near adjacency to RBIS,” said Mitch Butier, Avery Dennison’s chairman, president, and CEO. “With this acquisition, we are expanding our position in high-value categories and adding complementary channel access and data management capabilities that have the potential to further accelerate our Intelligent Labels strategy. We look forward to welcoming them into the Avery Dennison team.”

“Vestcom is a strong strategic fit for RBIS with a well-established base of long-term, market-leading customers,” said Deon Stander, vice president and general manager, RBIS. “Vestcom’s relationships and solutions, in combination with our own, will complement our strategy to accelerate Intelligent Label adoption beyond apparel.”