Shares of Paxar(PXR Quote) were among the NYSE's winners Friday, jumping 20% after the maker of tags and labels agreed to be acquired by Avery Dennison(AVY Quote) for $1.34 billion in cash.
Avery Dennison will pay $30.50 a share, a 27% premium over Paxar's closing price of $24.03 on Thursday. "This combination is a terrific strategic fit," said Avery Dennison. "Paxar's highly complementary capabilities advance our strategy to deliver exceptional products and superior service to customers at every level of the global retail supply chain, and to increase efficiency and reduce costs in a rapidly changing and increasingly competitive global marketplace."
Avery Dennison expects the transaction to result in annual cost savings of about $90 million to $100 million. The deal is expected by the end of the year, and after that is projected to add to Avery Dennison's earnings within one year. Shares of Paxar were trading up $4.76 to $28.79. Avery Dennison shares were gaining $1.37, or 2.1%, to $66.92. ...
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