• ACCO Brands Corporation to acquire Esselte

        • ACCO Brands Corporation today announced that it has signed a definitive agreement to acquire Esselte Group Holdings AB ("Esselte") from private equity firm J.W. Childs for $333 million in cash.

          Esselte's 2015 sales were $458 million with adjusted EBITDA of $60 million. ACCO Brands plans to combine Esselte with its existing European operations, creating a pan-European leader in branded business products.

          "The acquisition supports our brand leadership strategy, creates a pan-European leader in branded business products and further solidifies ACCO Brands' position as a leading global marketer and manufacturer of branded business, academic and consumer products," said Boris Elisman, chairman, president and chief executive officer of ACCO Brands Corporation.  "We believe this acquisition will provide investors with a compelling financial benefit and further enhance ACCO Brands' strategic ability to grow long-term shareholder value.  We expect this combination to be immediately accretive to adjusted earnings per share."

          The combination is expected to:

          • Yield an estimated $23 million of annualised cost synergies, or approximately $0.13 per share, within 3 years, excluding one-time restructuring, integration and purchase accounting costs;
          • Result in $0.12 adjusted EPS accretion in the first 12-month period, including synergies of $0.03 per share but excluding charges;
          • Generate incremental free cash flow of approximately $20 million in year one, growing to approximately $55 million in year three;
          • Create a premier branded pan-European player, with more than $600 million in combined European sales, providing greater consumer access, deeper channel relationships and cost leverage;
          • Complement ACCO Brands' existing European sales footprint, adding significant revenue in continental Europe;
          • Add important new brands and products in key categories to ACCO Brands' existing portfolio of leading brands and provide incremental sales opportunities outside of Europe; and
          • Enhance product innovation, category management and customer relevance.

          Other Financial Details, Approvals and Timing

          The transaction will be funded with cash and Euro-denominated bank debt. As part of the financing, and contingent upon the deal closing, the company intends to refinance its existing senior-secured credit facilities.

          As part of the acquisition, ACCO Brands will assume an estimated $160 million of unfunded pension liabilities, net of associated deferred tax, predominantly in Germany.  German pension law does not require pre-funding of pension liabilities, which will be payable over approximately the next 40 years.

          The closing of the transaction is subject to the satisfaction of customary closing conditions, including regulatory approvals, and is expected to be completed in early 2017.

        • Stay up to date - Click here and register for FREE Channel Info online membership and enjoy unlimited access to a host of benefits including the exclusive members area of the website, downloadable business tools, current and back issues archive, priority breaking news alerts, weekly e news summary and the Channel Info app

        • Related Articles

        • KYOCERA UK and Hyland announces official partnership

          KYOCERA UK and Hyland announces official partnership

          Friday 19th Oct 2018
          Hyland, a provider of software for managing content, processes and cases, and KYOCERA Document Solutions (UK) Limited have announced their official partnership, to pursue joint new market opportunities in the UK. Part of the global KY...Read More...
          DURABLE creates guide to best customer experience

          DURABLE creates guide to best customer experience

          Wednesday 17th Oct 2018
          Latest figures state that 92 per cent of consumers now read online reviews and it is widely believed that positive reviews can provide around an 18 per cent uplift in sales/bookings. As a result of this, DURABLE has created a step by step guide to h...Read More...
          Philips Professional Display Solutions adds to team

          Philips Professional Display Solutions adds to team

          Friday 12th Oct 2018
          Following its strong growth in both digital signage and pro-TV markets, Philips Professional Display Solutions has appointed a new UK and Benelux Marketing Manager, Vicky Fox, and a UK Hospitality Sales Manager, Daniel Everett, to support the co...Read More...
                • About Us

                  Channel Info is the leading source of business news and information for the office dealer and reseller market. Our multi-platform approach delivers relevant, engaging and focussed content via our main printed magazine, supplements, website, digital editions, apps, newsletters and bespoke communications with an unrivalled reach across the industry. A highly trusted and respected brand for many years, the team behind Channel Info has over 60 years experience collectively in the office products, furniture, equipment and technology markets Channel Info continues to develop and adapt in order to meet the changing information needs of its readers.

                  For our latest Media packs and more details on our range of services click here

                • View Latest Issue