Avery will acquire RFID Transponder Division of Smartrac Technology Group to expand its existing product portfolio and enhance the R&D and RFID offerings
Image: Avery Dennison headquarters of in Glendale, California in the US. Photo: courtesy of Coolcaesar/Wikipedia.
Dutch RFID technology and IoT solutions provider Smartrac Technology Group has agreed to divest its RFID Transponder Division to US-based label and packaging solutions company Avery Dennison in a deal worth €225m ($249m).
Under the terms of the deal, Avery Dennison will acquire Smartrac’s Transponder business and associated assets, including all manufacturing, R&D, sales and administration facilities. It will also take over all affected employees.
The transaction, however, is subject to regulatory approvals and other customary closing conditions.
Smartrac CEO and management board chairman Christian Uhl said: “Our people and capabilities are very complementary to Avery Dennison, hence offer a perfect basis to expand market success.
“We are convinced that our RFID inlays and tags business will face a bright future as part of Avery Dennison’s Intelligent Labels business, which is set to thrive on the rise of the Internet of Things and the growing customer demand for connected products.
“At the same time, our successful Solutions Business Division will continue to independently build on its offerings supporting the digital transformation.”
Acquisition will complement Avery Dennison’s Intelligent Labels platform
The acquisition is expected to complement Avery Dennison’s Intelligent Labels platform as well as expand its existing product portfolio, enhance the R&D, manufacturing and sales capacity and RFID offerings to its customers.
Avery said that the combination would create a platform with revenue of over $450m, offering long-term growth with strong research and development capabilities, and enhanced manufacturing capacity.
Avery Dennison chairman, president and CEO Mitch Butier said: “This acquisition reflects a continuation of our strategy to invest, both organically and through M&A, to shift our portfolio towards faster growing, higher value categories.
“Smartrac’s Transponder Division represents an excellent strategic fit for us, accelerating our strategy to expand our Intelligent Labels platform across a variety of end markets and customers within the industrial and retail segments, and extending our reach to new channels.”
Employing approximately 900 people, Smartrac’s Transponder (RFID Inlay) Division is engaged in the development and manufacture of RFID products.
Earlier this year, Avery Dennison has teamed up with automated medication management solutions provider Kit Check to integrate RFID technology into cGMP packaging lines.
The partners will work directly with drug manufacturers across the world to apply RFID tags to medication packaging.