Avery Dennison to Acquire Meridian's Flooring Adhesives Division

Avery Dennison (AVY) will acquire Meridian's Flooring Adhesives Division, including Taylor Adhesives, Polycom, and Frontier Products. The deal aims to expand Avery Dennison's Materials Group and bolster its position in specialized flooring adhesives. Meridian will focus on its remaining portfolio, ensuring continuity for employees and customers during the transition. Financial details have not been disclosed.

Avery Dennison Corporation (NYSE: AVY), a global leader in materials science and digital identification solutions, has announced its intention to acquire Meridian Adhesives Group's U.S.-based flooring adhesives business. The acquisition, which includes the Taylor Adhesives, Polycom, and Frontier Products brands, aims to bolster Avery Dennison's Materials Group and expand its presence in specialized flooring adhesives [1].

The acquisition is expected to close in the fourth quarter of 2025, with the financial details remaining undisclosed. Upon completion, the acquired business will be integrated into Avery Dennison's Materials Group, leveraging the company's materials science capabilities and deepening its specialty adhesives solutions [1].

Deon Stander, Avery Dennison's president and CEO, stated that the acquisition will add valuable application-oriented solutions in high-value categories to their adhesives portfolio. The move aligns with Avery Dennison's growth strategy, which aims to expand its presence in high-value product lines [1].

From Meridian's perspective, this divestiture represents a strategic pivot to focus resources on its remaining portfolio. The company has achieved substantial growth under its ownership of the flooring division, suggesting it is selling from a position of strength rather than necessity [2].

The transaction is expected to maintain continuity for employees, customers, and partners, ensuring that the same people, products, and service will be provided, while also benefiting from increased investment and resources from Avery Dennison [2].

For Avery Dennison investors, this acquisition potentially introduces new revenue streams and cross-selling opportunities within their materials business. The focus on high-performing and high-value products suggests the acquisition targets margin expansion rather than merely increasing scale [2].

Avery Dennison reported its second-quarter 2025 earnings, revealing an adjusted earnings per share (EPS) of $2.42, which surpassed analyst expectations. The company fell short of its revenue forecast but maintained a strong profitability with a 28.6% gross margin [1].

References:
[1] https://www.investing.com/news/company-news/avery-dennison-to-acquire-meridians-flooring-adhesives-business-for-390m-93CH-4209683
[2] https://www.stocktitan.net/news/AVY/meridian-to-divest-flooring-business-including-taylor-adhesives-c5rb510qs7xi.html