UPDATE 2-Avery Dennison to sell office supplies business, shares rise
* Avery to sell office products, engineered solutions units to CCL for $500 mln
* Canada's CCL says deal to take pro-forma annual rev above $2 bln for first time
* Avery shares rise 11 percent; CCL touches life-high (Adds comment from CCL Industries CEO; updates shares)
By Bhaswati Mukhopadhyay
Jan 30 (Reuters) - Avery Dennison Corp said it would sell its consumer and office supplies unit, which includes Avery labels and Hi-Liters markers, and its coated films business to Canada's CCL Industries Inc for $500 million.
Avery shares rose as much as 11 percent to a 19-month high of $40.00 on the New York Stock Exchange, while CCL jumped 16 percent to a life-high of C$53.25 on the Toronto Stock Exchange.
The sale comes three months after 3M Co dropped its $550 million offer to buy Avery's office and consumer products business following anti-trust concerns.
"Avery is certainly selling this business for less than what it was supposed to sell it to 3M for. We expected that to happen, but we didn't expect them to package another business along with it," Morningstar analyst Todd Wenning said.
Sales of office supplies have taken a hit as businesses and governments cut spending in a weak economy. Margins have also suffered with rising raw material costs. Continued...