The HSR notification for the Paxar(PXR) - Avery Dennison (AVY) merger was filed during the first week of this month. Assuming an April 5 submission date, the HSR waiting period will expire on or about May 7, 2007.

With respect to the FTC review, there continues to be absolutely little reason to expect a second request (or re-filing) despite some product overlap.

Further research into the segments identified below have uncovered no specific market share data, yet no indication from any source that the companies can be considered dominant players in any niche. The most commonly used description for the label printing market is undoubtedly 'fragmented'.

PS Nonwovens Stock

  1. 3 Sigma Corp.
  2. 3M Converter Markets
  3. Acucote Incorporated
  4. Advanced Coating & Converting
  5. Avery Dennison Printer Systems
  6. Avery Dennison, Fasson Roll
  7. Azcoat Inc.
  8. Can-Do National Tape
  9. Clear Cast Technologies Inc.
  10. Dunmore Corporation
  11. DuPont Tyvek
  12. Dynic USA
  13. Griff Paper & Film
  14. Intercoat
  15. Lamart Corp.
  16. MACtac (Morgan Adhesives Company)
  17. NAStar
  18. Novelprint
  19. P.I.C. Industries Inc.
  20. Paper Resources Inc.
  21. Paxar Corporation
  22. Polykote Corp.
  23. Polyonics Inc.
  24. Quicklabel Systems
  25. Rayven Inc.
  26. Roll Cover Italiana
  27. Spinnaker Coating LLC
  28. Weber Marking Systems Inc.

PS Paper Stock

  1. 3 Sigma Corp.
  2. 3M Converter Markets
  3. Acucote Incorporated
  4. Advanced Coating & Converting Systems
  5. Appleton
  6. Avery Dennison Printer Systems
  7. Avery Dennison, Fasson Roll
  8. Azcoat Inc.
  9. Boise Paper
  10. Brady Worldwide
  11. Can-Do National Tape
  12. Cham-Tenero Paper Mills Inc.
  13. Channeled Resources Group
  14. Griff Paper & Film
  15. Lamart Corp.
  16. MACtac (Morgan Adhesives Company)
  17. NAStar
  18. Novelprint Sistemas d
  19. P.I.C. Industries Inc.
  20. Paper Resources Inc.
  21. Paxar Corporation
  22. Plastiprint Inc.
  23. Polykote Corp.
  24. Quicklabel Systems
  25. Rayven Inc.
  26. Spinnaker Coating LLC
  27. Stora Enso
  28. Technicote Inc.
  29. Thilmany LLC
  30. UPM Raflatac Inc.
  31. Wausau Coated Products Inc.
  32. Weber Marking Systems Inc.

PS Nonwovens Stock

  1. 3 Sigma Corp.
  2. 3M Converter Markets
  3. Acucote Incorporated
  4. Advanced Coating & Converting Systems
  5. Appleton
  6. Avery Dennison Printer Systems
  7. Avery Dennison, Fasson Roll
  8. Azcoat Inc.
  9. Can-Do National Tape
  10. Channeled Resources Group
  11. CleaningCard.com
  12. Clear Cast Technologies Inc.
  13. Dunmore Corporation
  14. Dynic USA Corporation
  15. FLEXcon
  16. Green Bay Packaging Inc.
  17. Griff Paper & Film
  18. Intercoat
  19. Lamart Corp.
  20. MACtac (Morgan Adhesives Company)
  21. Mark Products
  22. Matan Digital Printers
  23. NAStar
  24. Novelprint Sistemas
  25. P.I.C. Industries Inc.
  26. Paper Resources Inc.
  27. Paxar Corporation
  28. Polykote Corp.
  29. Quicklabel Systems
  30. Ritrama Roll Cover Italiana
  31. Spinnaker Coating LLC
  32. STA Overlaminations
  33. Stora Enso
  34. Speciality Papers
  35. Technicote Inc.
  36. UPM Raflatac Inc.
  37. Wausau Coated Products Inc.
  38. Weber Marking Systems Inc.

Coated Tag Stock

  1. Acucote Incorporated
  2. Appleton
  3. Avery Dennison Printer Systems
  4. Avery Dennison, Fasson Roll
  5. Azcoat Inc.
  6. CBC Coating
  7. Channeled Resources
  8. Clear Cast Technologies
  9. Contract Converting LLC
  10. Dunmore Corporation
  11. Dynic USA
  12. FLEXcon
  13. Glatfelter
  14. Graphics One Inc.
  15. Griff Paper & Film
  16. Hanita Coatings
  17. Hazen Paper Co.
  18. Hutchison Miller Sales Co.
  19. Kanzaki Specialty Papers
  20. Klockner Pentaplast
  21. Lamart
  22. Matthias Paper Corp.
  23. Miami Wabash
  24. NAStar
  25. Neenah Paper Inc.
  26. Novelprint Sistemas
  27. P.I.C. Industries
  28. Paper Resources
  29. Paxar Corporation
  30. Performance Plastics
  31. Plastic Suppliers Inc.
  32. Polykote
  33. Polyonics
  34. Saint-Gobain
  35. Spinnaker Coating
  36. Stora Enso
  37. Speciality Papers
  38. Technicote
  39. UPM Raflatac
  40. Valeron Strength Films
  41. Weber Marking Systems Inc.

Uncoated Tag Stock

  1. Acucote Incorporated
  2. Avery Dennison Printer Systems
  3. Avery Dennison, Fasson Roll
  4. Azcoat Inc.
  5. Channeled Resources Group
  6. Clear Cast Technologies Inc
  7. Contract Converting LLC
  8. DuPont Tyvek
  9. Glatfelter
  10. Granwell Products Inc.
  11. Graphics One Inc.
  12. Griff Paper & Film
  13. Klockner Pentaplast
  14. Miami Wabash
  15. NAStar
  16. Novelprint Sistemas
  17. P.I.C. Industries Inc.
  18. Paper Resources Inc.
  19. Paxar Corporation
  20. Phoenix Films Inc.
  21. Plastic Suppliers Inc.
  22. Polykote Corp.
  23. Polyonics Inc.
  24. Spinnaker Coating LLC
  25. Technicote Inc.
  26. Transilwrap of Canada Ltd.
  27. Valeron Strength Films
  28. Weber Marking Systems Inc.

Bar Code Printers

  1. AB Graphic International
  2. Atlantic Zeiser
  3. Avery Dennison Printer Systems
  4. Bell-Mark
  5. CleaningCard.com
  6. Digital Print Inc.
  7. Domino Amjet Inc.
  8. Drent Goebel North America
  9. Jetrion LLC
  10. Label Vision Systems Inc.
  11. Novaflow Systems, Inc.
  12. Paxar Corporation
  13. Primera Technology Inc.
  14. Printing Technology Services Inc.
  15. Printronix Quality Discount
  16. Press Parts & Equipment, Inc.
  17. Quicklabel Systems
  18. RSI ID Technologies
  19. Sato Europe NV
  20. Seagull Scientific Inc.
  21. Sinel Systems SA
  22. Tharo Systems, Inc.
  23. Videojet Technologies Inc.
  24. Weber Marking Systems Inc.
  25. XSYS Supplies

Thermal Transfer Printers

  1. AB Graphic International
  2. Avery Dennison Printer Systems
  3. Bell-Mark
  4. Cartes Equipment Srl
  5. CleaningCard.com
  6. Drent Goebel
  7. Elmark Packaging
  8. Label Vision Systems
  9. Matan Digital Printers
  10. Newfoil Machines
  11. Paxar Corporation
  12. Printronix
  13. Quality Discount Press Parts
  14. Quicklabel Systems
  15. RSI ID Technologies
  16. Sato Europe NV
  17. Seagull Scientific Inc.
  18. Sinel Systems SA
  19. Tharo Systems, Inc.
  20. Videojet Technologies
  21. Weber Marking Systems
  22. XSYS Supplies

Variable Data Printers

  1. AB Graphic International
  2. Aquaflex
  3. Atlantic Zeiser
  4. Avery Dennison Printer Systems
  5. Bell-Mark
  6. Digital Print Inc.
  7. Domino Amjet Inc.
  8. Drent Goebel
  9. Eastman Kodak Company
  10. Elmark Packaging Inc.
  11. Jetrion LLC
  12. Matan Digital Printers
  13. Paxar Corporation
  14. Printing Technology Services
  15. Printronix
  16. Quicklabel Systems
  17. Seagull Scientific Inc.
  18. Sinel Systems SA
  19. Tharo Systems, Inc.
  20. Videojet Technologies
  21. Weber Marking Systems Inc.

 

According to the companies themselves, the market is described as follows:

Our opinion is that we've got less than a 10% share with both companies together and this has been a very -- we've done a very extensive review, the markets in which we deal.

There is a lot of competition out there. There is at least five or six companies that compete with us on a global basis and there is -- I would put it in the probably the thousands. It's in at least the high hundreds of regional competitors all over the world that we compete with."

Again, no reliable market share data has been found to confirm or contradict the companies' estimates -- this applies to every niche in which an overlap has been found. There simply does not appear to be any recent reliable data for this products available at the moment. While this can be considered somewhat of an issue, there continues to be absolutely no indication of a competition problem here. (An example of this concept can be found in this list of RFID competitors).

In years past, this type of deal (i.e. multiple overlaps, complex products, lack of data) might be a strong candidate for an "educational" second request. The fact of the matter is that the current FTC has shown little interest in issuing second requests for the purpose of obtaining clarity or gathering data on a specific market.

In sum, the information obtained to this point strongly suggest that the FTC will have no interest in the combination and will most likely allow the waiting period to expire in the standard 30 days. It would be remiss to completely ignore the possibility of some delay based on the factors listed above, so the possibility of an HSR withdrawal/refiling must be acknowledged. The chances of this occurring are perceived to be less than 20%.

Disclosure: We have no positions of any kind, in any security. We are a completely neutral source of research and analysis.

The M & A Researcher

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