Avery Dennison (NYSE:AVY) today announced a definitive agreement to acquire the European business of Mactac from Platinum Equity, a California-based private equity firm, for the purchase price of €200 million including assumed debt. With 2015 year-end run-rate revenues of €147 million, or approximately $170 million, and approximately 470 employees, the business is a leading manufacturer of high quality pressure-sensitive materials, serving several high-value segments, including graphics, specialty labels and industrial tapes. Mactac’s core product lines complement Avery Dennison’s existing graphics portfolio.

“The acquisition of Mactac Europe enhances our competitiveness in high-value graphics, where we have sustained above-average growth over the past few years,” said Dean Scarborough, Avery Dennison chairman and CEO. “Known for high product quality and outstanding service, Mactac complements our existing business with a strong brand and loyal customer base, expanding our product offering, capabilities, and distributor network.”

With a manufacturing facility in Soignies, Belgium, along with sales offices and warehouses in Europe and Asia, the Mactac business expands Avery Dennison’s global footprint and provides needed capacity to support its growth. Through export sales, Mactac Europe also serves customers in South America, Asia Pacific, the Middle East, and North Africa. The transaction excludes the Mactac business in the U.S., Canada and Mexico and its North American exports.

The acquisition is expected to have an immaterial impact to earnings per share in 2016 and be approximately ten cents accretive to EPS in 2017.

Avery Dennison will maintain the Mactac brand for graphic films, building on its existing strengths and customer relationships.

“We have been very impressed with what Mactac’s team has accomplished and believe the combination of the two companies’ talented employee bases will create a stronger European team with expanded capabilities and growth opportunities,“ said Mitch Butier, president and COO, Avery Dennison. “We plan to continue operating Mactac’s manufacturing facility in Soignies, Belgium and to make the facility and its people a key driver of Avery Dennison’s future innovation and growth in Europe.”

“Mactac’s European business has come a long way with the successful restructuring of its operations and product portfolio. It is today fundamentally strong and well positioned to join Avery Dennison and take this next step in the company’s evolution,” said Platinum Equity Partner Louis Samson. “The company’s progress and recent success is a testament to its strong leadership team and dedicated employees. We are proud of everything Mactac Europe has accomplished under Platinum Equity’s ownership.”

Samson said his team now remains focused on partnering with Mactac’s North American leadership to continue driving its growth and profitability.

Avery Dennison will fund the acquisition with existing cash and credit facilities. The acquisition is expected to close within three months, subject to customary conditions and approvals.