MENTOR, Ohio – August 25, 2025 — Avery Dennison Corporation (NYSE:AVY), a leading global materials science and digital identification solutions company, today announced it has signed a definitive agreement to acquire the U.S.-based flooring adhesives business of Meridian Adhesives Group, a global adhesives manufacturer, for the purchase price of $390 million. The acquisition is subject to certain customary closing and post-closing adjustments. 

Meridian’s flooring adhesives business is a leader in the development, manufacture and commercialization of specialty adhesives and coatings for the U.S. flooring industry, with projected 2025 revenue of approximately $110 million and attractive operating margins. Headquartered in Dalton, Georgia, it operates four manufacturing facilities in the United States and employs approximately 110 people.

"Avery Dennison remains sharply focused on expanding in high-value categories, both organically and through M&A,” said Deon Stander, Avery Dennison president and CEO. “This acquisition will leverage our materials science capabilities, while deepening our specialty adhesives solutions, with a business that is highly regarded within the floor covering industry for its product quality, strong customer relationships and continuous innovation.” 

Upon completion of the transaction, the flooring adhesives business will become part of the Avery Dennison Materials Group business. The Meridian flooring adhesives business includes Taylor Adhesives, Polycom and Frontier Products’ brands.

“This acquisition is an excellent fit with Materials Group,” said Ryan Yost, president, Avery Dennison Materials Group. “It adds a valuable set of application-oriented solutions in high-value categories to our adhesives portfolio. We see strong cost and technology synergies that will build on our materials science capabilities, acrylic adhesive expertise and open new application opportunities for us in the flooring industry.”

Ralph Grogan, commercial president of flooring, Meridian, added: “I am incredibly proud of what our teams at Taylor Adhesives, Polycom and Frontier Products have built. With Avery Dennison’s backing and reach, these brands are well-positioned to continue growing and delivering even greater value to our customers.”

Avery Dennison expects the transaction to close in the fourth quarter. It is not expected to have a material impact on the company’s adjusted earnings per share in 2025. 

Chemlink Partners, LLC and Goodwin Procter LLP advised Avery Dennison on the transaction. Piper Sandler, Moelis & Company, and Weil, Gotshal & Manges LLP advised Meridian on the transaction.