Avery Dennison Corp. has signed a definitive agreement to sell its office and consumer products business to 3M Co. for $550 million in cash.

The Pasadena company on Tuesday noted that the unit, which makes labels, binders and filing materials, complements 3M’s global line of Post-It notes, Scotch Tape and similar products. The Avery unit, which is based in Brea, is expected to report sales of about $765 million for last year.

Avery said it plans to use proceeds from the sale to reduce debt, make additional pension contributions, and repurchase shares. The deal also leaves the company free to concentrate on its other businesses as the office supplies industry continues to struggle post-recession. Avery makes adhesive papers, labels and signs.

“The sale …. presents the best opportunity to maximize (the unit’s) value for Avery Dennison’s shareholders,” said Chief Executive Dean Scarborough in a statement.

The transaction, which is subject to regulatory review, is expected to close in the second half of this year.

Shares were up 49 cents, or 1.7 percent, to $29.17 in midday trading on the New York Stock Exchange.