ACCO Brands: A Deep-Value Play in a Disruptive Era of AI, Energy, and Onshoring

In an era defined by AI-driven energy transitions and global onshoring shifts, ACCO Brands (ACCO) emerges as an undervalued infrastructure enabler. While the company’s core operations in office and consumer products may seem unconnected to cutting-edge technologies, its strategic focus on supply chain optimization, cost reduction, and geographic diversification positions it to benefit from broader industry tailwinds. By dissecting ACCO’s operational resilience and its indirect alignment with AI and energy transition trends, this analysis argues that the company is a compelling deep-value play for investors seeking exposure to infrastructure enablers in a disruptive landscape.

Operational Resilience Amid Cost-Cutting and Onshoring

ACCO Brands has embarked on a multi-year cost reduction program targeting $60 million in annualized pre-tax savings through 2025. This includes streamlining operations, reducing headcount, and rationalizing its global footprint [1]. These efforts have already yielded tangible results: operating cash flow improved year-to-date in 2024, and the company’s leverage ratio dropped to 3.5x as of September 30, 2024 [2]. Such financial discipline is critical in an environment where tariffs and soft demand in the Americas have pressured sales. For instance, Q1 2025 saw an 8% decline in comparable sales in the Americas, though this was partially offset by growth in Brazil and computer accessories [3].

The company’s onshoring strategy is another key differentiator. Faced with U.S. tariffs, ACCO accelerated sourcing from non-China regions, aiming to make China-sourced products “insignificant” in the U.S. market by 2025 [4]. This shift aligns with global onshoring trends, as companies prioritize supply chain resilience over cost efficiency. ACCO’s adoption of SAP Transportation Management further underscores its infrastructure focus, enabling real-time shipment tracking and reducing freight costs [5]. These initiatives not only mitigate risks but also position ACCO as a logistical backbone for industries reliant on hybrid work environments and technology-integrated solutions.

Indirect Alignment with AI and Energy Transition Trends

While ACCO has not explicitly invested in AI or energy transition projects, its operations intersect with these megatrends through infrastructure enablement. The AI-driven energy transition, for example, is reshaping demand for low-carbon energy and data center infrastructure. Strategic buyouts like Constellation Energy’s $26.6 billion acquisition of Calpine Corp highlight how firms are consolidating AI-ready infrastructure to meet surging demand [6]. ACCO’s supply chain innovations and onshoring efforts could indirectly support such transitions by providing reliable, cost-optimized logistics for energy and tech firms.

Moreover, ACCO’s product diversification into hybrid work solutions—such as the Thunderbolt five docking station for Apple—positions it to benefit from the growing need for technology-integrated office essentials [7]. While these offerings are modest in 2025, they reflect a forward-looking approach to product innovation that aligns with the hybrid work paradigm, a critical component of AI-driven productivity ecosystems.

Strategic Positioning for Long-Term Growth

ACCO’s leadership changes and geographic restructuring further reinforce its strategic agility. The appointment of Jed Peters and Rubens Passos to lead the Americas and Latin America, respectively, signals a commitment to customer-centric operations [8]. Meanwhile, the transition of Cezary Monko to AJ Spijkervet in the International segment underscores a focus on operational efficiency. These moves, combined with ACCO’s $100 million cost reduction initiative, demonstrate a management team attuned to the challenges of a volatile market.

Conclusion: A Deep-Value Play with Infrastructure Synergies

ACCO Brands may not be a direct participant in AI or energy transition projects, but its role as an infrastructure enabler cannot be overlooked. By optimizing supply chains, embracing onshoring, and reducing costs, the company is well-positioned to support industries undergoing digital and energy transformations. For investors seeking undervalued exposure to the infrastructure underpinning AI and energy transitions, ACCO offers a compelling case of operational resilience and strategic foresight.

Source:
[1] ACCO Brands Corporation Announces Cost Reduction Program Targeting Annualized Pre-Tax Savings of at least $60 Million [https://ir.accobrands.com/news/news-details/2024/ACCO-Brands-Corporation-Announces-Cost-Reduction-Program-Targeting-Annualized-Pre-Tax-Savings-of-at-least-60-Million/default.aspx]
[2] ACCO Brands Reports Third Quarter Results [https://www.businesswire.com/news/home/20241031241755/en/ACCO-Brands-Reports-Third-Quarter-Results]
[3] ACCO Brands Q1 2025: Navigating Key Contradictions in Sales Strategy, Tariffs, and Demand Dynamics [https://www.ainvest.com/news/acco-brands-q1-2025-navigating-key-contradictions-sales-strategy-tariffs-demand-dynamics-2505/]
[4] ACCO Brands Q1 2025: Navigating Key Contradictions in Sales Strategy, Tariffs, and Demand Dynamics [https://www.ainvest.com/news/acco-brands-q1-2025-navigating-key-contradictions-sales-strategy-tariffs-demand-dynamics-2505/]
[5] ACCO Brands Cuts Freight Costs and Gains Supply Chain Visibility with SAP Transportation Management [https://www.sap.com/assetdetail/2025/08/04f9ccc7-167f-0010-bca6-c68f7e60039b.html]
[6] The AI-Driven Energy Transition: Strategic Buyouts and Undervalued Infrastructure Giants [https://www.ainvest.com/news/ai-driven-energy-transition-strategic-buyouts-undervalued-infrastructure-giants-2508/]
[7] ACCO Brands Corp Reports In-Line Q2 2025 Earnings, Outlines Strategic Initiatives [https://www.ainvest.com/news/acco-brands-corp-reports-line-q2-2025-earnings-outlines-strategic-initiatives-tariff-uncertainty-soft-sales-2508]
[8] ACCO Brands Announces Leadership Changes [https://www.nasdaq.com/press-release/acco-brands-announces-leadership-changes-2025-06-10]