3M and Avery Dennison concluded an agreement for 3M to purchase Avery Dennison's Office and Consumer Products business for $550 million in cash. Avery Dennison will focus on shareholder value by focusing on its pressure sensitive materials and retail branding and information solutions businesses.

Globally, pressure-sensitive labels are the second largest labeling technology with growth figures, mainly driven by developments in eastern Europe, Asia Pacific, and South America. There are also significant shifts in material selection in all markets influencing the supplier base, converting technologies, and end-use markets.

Avery Dennison's Office and Consumer Products business is a leading supplier of printable media and other products. Anticipated sales in 2011 are around $765 million, with EBITDA expected to be around $95 million. The cash input will also mean Avery Dennison can reduce its debt burden and buyback shares.

Avery Dennison produces pressure-sensitive materials, office products, and a range of tickets, tags, labels, and other converted products. The company operates in the US and Europe. It is headquartered in Pasadena, California, and employs about 32,100 people. The company recorded revenues of $6,512.7 million during the financial year ended December 2010 (FY2010), an increase of 9.4% over FY2009. The operating profit of the company was $351.3 million in FY2010, as compared to operating loss of $790.9 million during FY2009. The net profit was $316.9 million in FY2010, as compared to net loss of $746.7 million in FY2009.