3M Co. added heft to its office supplies business, which includes the iconic Post-it and Scotch brands, with its $550 million acquisition of Avery Dennison Corp.'s office and consumer products unit.
The diversified manufacturer said the cash deal would reduce its earnings by about 6 cents a share in the year after the deal closes, which is expected in the second half of 2012.
Excluding items, the deal would add 3 cents a share in the same period, it said in a statement.
In a separate statement, Avery Dennison said it intends to use the money to reduce debt and repurchase shares. Pro forma sales in 2011, excluding the office products business, is expected to be about $6 billion, it said.
The office and consumer products business is expected to post sales of about $765 million in 2011, the companies said.
In November, MeadWestvaco Corp. also spun off its consumer and office products business and merged it with Acco Brands Corp.
Shares of Avery Dennison were up 4 percent, while 3M shares were up 1 percent before the bell.
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