Label Stock Vendors Under Investigation

On August 21, 2002, Bemis signed an agreement to sell its pressure-sensitive materials business segment to UPM-Kymmene for $420 million in cash.

Raflatac and MACtac are said to be the second and third largest producers of pressure-sensitive label stock in North America.

The DOJ concluded that the merger would facilitate coordination between the merged company and other North American producers of bulk paper label stock, and would substantially reduce competition in the production of bulk paper label stock for use in variable information printing and prime labeling. The merger would result in higher prices for bulk paper label stock throughout the United States, the DOJ contends.