ACCO Brands Corporation announced the acquisition of Industria Grafica Fornoi Ltda., a leading provider of notebooks and paper-based school and office products in Brazil.

On August 4th, 2019, ACCO Brands Corporation, one of the world’s largest designers, marketers and manufacturers of branded academic, consumer and business products, announced that it has acquired Industria Grafica Foroni Ltda. (“Foroni”), a leading provider of notebooks and paper-based school and office products in Brazil, for a cash purchase price of approximately US$57 million, subject to working capital and other adjustments. The estimated full-year incremental sales contribution to ACCO Brands would be approximately US$60 million, and the transaction is expected to result in modest adjusted earnings per share accretion and incremental adjusted EBITDA of US$10 million on an annualized basis.  ACCO Brands funded the acquisition with cash and debt. For 2019, Foroni is expected to add US$35 million in sales and $0.01 to adjusted EPS to ACCO Brands, and leaves its full-year free cash flow outlook unchanged.*

“We have been very pleased with our Tilibra business in Brazil, which has grown organically 26%** over the last three years, and are excited to add Foroni and its brands to our portfolio of consumer and school products. Together, Tilibra and Foroni will offer an unprecedented choice and value to the Brazilian trade and consumers, and position ACCO Brands for faster growth,” said Boris Elisman, Chairman, President and Chief Executive Officer of ACCO Brands. “This acquisition is consistent with our strategy to expand in faster growing geographies and product categories, add consumer-centric brands and diversify our customer base.”

*All estimates used a conversion rate of 3.84 Brazilian Real to 1 $US dollar
** In Brazilian Real

 Source: ACCO Brands