Avery in Talks to Sell Its Only Operating Unit
Avery Inc. said Thursday that it is in talks to sell its Uniroyal Chemical Co. subsidiary, its only operating division, to a group led by the unit’s management for between $800 million and $810 million in cash and debt.
Avery said that it expects the price to include $240 million to $250 million in cash and $560 million in assumed debt.
The potential purchasing group retained Drexel Burnham Lambert Inc. to arrange financing for the purchase.
New York-based Avery, which acquired Uniroyal Chemical in October, 1986, for $710 million, said last January that it intended to sell it.
The sale of the unit, if completed by March 31, will leave Avery with no other material assets, except for cash of $45 million to $55 million. It will have no outstanding debt when the deal is completed.
Avery said it is reviewing all options available to it upon consummation of the deal, including the acquisition of another business, the liquidation of the company and other alternatives.
If an agreement is reached, it also will be subject to approval by Avery’s board and shareholders, commitments from bondholders, the obtaining of financing by the purchaser and regulatory approvals.