ACCO Brands Corporation has announced that it has completed the acquisition of Esselte Group Holdings AB. The combination looks to improve ACCO Brands' scale and enhances its position as an industry leader in Europe.
The company's newly combined European business will be run by Cezary Monko, formerly the president and chief executive officer of Esselte, who will report directly to Elisman. Concurrently with closing the acquisition, the company entered into new senior credit facilities, which include a new Euro-denominated term loan to fund the transaction. The new senior credit facilities, along with new 5.25% senior unsecured notes due 2024, which were issued on December 22, 2016, provide the company with a more optimal credit structure and lower interest rates. Also, as a result of this acquisition, the company expects to realign its business segments for financial reporting purposes, beginning with the first quarter results.
Boris Elisman, Chairman, President and Chief Executive Officer of ACCO Brands said, "we are excited to add Esselte, its talented employees and its portfolio of products and brands to the ACCO Brands family. This transaction, together with the Pelikan Artline acquisition completed in May 2016, is expected to deliver approximately $31 million of annual synergies by the third anniversary of the Esselte closing."
The Esselte acquisition is expected to:
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