Avery Dennison Corp. recently announced a definitive agreement to acquire Smartrac’s Transponder (RFID Inlay) division for the purchase price of €225 million (approximately $248 million), subject to certain closing and post-closing adjustments. The division reportedly achieved 2019 estimated global revenue of approximately €125 million (~ $138 million) and has around 900 employees.
“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,” said Mitch Butier, Avery Dennison chairman, president, and CEO. “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.”
According to Avery Dennison, the combination creates a platform with over $450 million in revenue offering long-term growth and profitability above the company average, with strong research and development capabilities, expanded product lines, and added manufacturing capacity. Headquartered in Amsterdam, the Netherlands, Smartrac has manufacturing facilities in Germany, Malaysia, China, and the U.S.
“We believe in a future where every physical item will have a unique digital identity and digital life, which will transform the visibility of products throughout the supply chain, all the way to the consumer, helping to improve efficiencies, increase sustainability, and enhance consumer experience,” said Francisco Melo, vice president and general manager of Intelligent Labels for Avery Dennison. “The capabilities of Smartrac will enable us to continue delivering on this vision across multiple verticals.”
According to Christian Uhl, Smartrac’s CEO and chairman of the management board, “Our RFID transponder business is among the pioneers in the RFID industry, having built a very attractive product portfolio across a broad variety of customer needs and frequencies. The combination with Avery Dennison will help us to continue driving innovation that benefits our customers and the overall industry.”