Enhances Capabilities for Rapidly Growing Intelligent Labels Platform
GLENDALE, Calif.–(BUSINESS WIRE)–Avery Dennison Corporation (NYSE:AVY) today announced a definitive agreement to acquire Smartrac’s Transponder (RFID Inlay) Division, for the purchase price of €225 million, subject to certain closing and post-closing adjustments. The division is a leader in the development and manufacture of RFID products, with 2019 estimated global revenue of approximately €125 million, or approximately $140 million, and approximately 900 employees.
“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”
“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.”
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.
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Source: Avery Dennison to Acquire Smartrac’s RFID Inlay Business | Business Wire