ACCO Brands to Acquire Trust in Strategic Expansion
ACCO sits 54% above its 52-week low of $2.811.
Summary
ACCO Brands announced it will acquire Trust for about $57 million, expanding its product portfolio. Trust generates about $100 million in annual revenue. The company expects to realize cost synergies of about $5 million to $8 million. The deal follows a Q2 where sales rose 5.1% to $415.1M but operating income fell 8.2% and net income dropped 52% due to one-time costs. The acquisition could help offset recent margin pressure if Trust brings higher-margin products. Watch for details on expected synergies in the next earnings call.
At the time of this announcement, ACCO was trading at $4.32 on NYSE in the Manufacturing sector, with a market capitalization of approximately $398.8M. The 52-week trading range was $2.81 to $4.56. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.