OREANDA-NEWS. ACCO Brands Corporation (NYSE:ACCO), one of the world's largest designers, marketers and manufacturers of branded business, academic and consumer products, today announced that it has signed a definitive agreement to acquire the remaining 50% of Pelikan Artline Pty Limited, its joint-venture company serving the Australia and New Zealand markets.  The cash purchase price will be approximately US$103 million.  The estimated full-year incremental sales contribution to ACCO Brands would be approximately US$112 million and the full-year incremental adjusted EBITDA contribution would be approximately US$17 million, pre-synergies, based on 2015 results.  Pelikan Artline will be combined with ACCO Brands' existing businesses in Australia and New Zealand.

"We are very pleased that we will be able to combine our complementary businesses to create the largest supplier of premier branded business, academic and consumer products in Australia and New Zealand," said Boris Elisman, president and chief executive officer, ACCO Brands.  "The new ACCO Brands Australia will provide us a strong foundation for long-term growth while deepening our customer relationships and improving our competitiveness in the region."

ACCO Brands expects that the acquisition will be immediately accretive to its adjusted earnings per share, contributing an estimated US$0.06 in the first twelve months, including anticipated synergies but excluding one-time restructuring, integration and purchase accounting costs. When fully realized, the company expects to generate approximately US$8 million in synergies, primarily through purchasing and distribution efficiencies, and elimination of redundant positions.  The company expects that integration and cash restructuring expenses associated with the acquisition will be approximately US$15 million.  The company expects minimal change in its pro-forma leverage as a result of the acquisition.

The transaction is expected to be consummated in the next 60 days, subject to customary closing conditions.  Approximately 18% of the purchase price will be used to redeem a minority shareholder interest in a subsidiary of Pelikan Artline, which is expected to occur following closing of the acquisition.