Avery to Cut Jobs After Closing Deal
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Avery Dennison Corp., which makes Hi-Liter markers and sticky labels, plans to cut about 800 to 1,000 jobs over two years after the purchase of Jackstadt of Germany for about $295million in cash and debt.
The reductions, about 5% of the companies’ combined work force of 19,000, will be at both Avery Dennison and Jackstadt. The acquisition of Jackstadt, the world’s largest closely held maker of self-adhesive materials, was completed Friday.
Avery Dennison expects restructuring costs of about $30million to $40 million this year. Expenses related to the job cuts are expected to be about $60million to $70 million over two years.
The acquisition will reduce profit about 5 cents to 8 cents a share over 12 months, excluding the costs, Pasadena-based Avery Dennison said.
Avery Dennison shares rose 60 cents to $68.57 in trading on the NYSE.
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