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Avery Dennison buys smart labels business for €225 million 

Avery Dennison Corporation signed a deal to buy Smartrac’s Transponder RFID Inlay business for €225 million ($A365 million) to drive its expansion into the Intelligent Labels market.

smartrqc inlays and tags
  Smartrac inlays and tags

Amsterdam-based Smartrac’s RFID (radio frequency identification) division is a leader in the development and manufacture of RFID products, with 2019 estimated global revenue of €125 million, and approximately 900 employees.

Avery Dennison, a California-based worldwide leader in adhesive technologies, display graphics and packaging materials, is seeking to 'transform the visibility of products throughout the supply chain.'

 mitch butier avery d ceo
   Mitch Butier, CEO Avery Dennison

“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 $US450 million in revenue offering long-term growth and profitability, with strong research and development capabilities, expanded product lines and added manufacturing capacity.

“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, intelligent labels for Avery Dennison. “The capabilities of Smartrac will enable us to continue delivering on this vision across multiple verticals.”

Smartrac’s CEO and chairman Christian Uhl, added: “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. 

“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.”

Smartrac is headquartered in Amsterdam, the Netherlands. The company has manufacturing facilities in Germany, Malaysia, China, and the United States.

avery dennison logo 2As part of the transaction, Avery Dennison will acquire Smartrac’s Transponder business and associated assets, including all manufacturing, R&D, sales and administration facilities, and will take over all affected employees. Avery Dennison will also assume all contractual obligations to employees, customers and suppliers. It plans to fund the acquisition with existing cash and credit facilities, and expects the transaction to close in a few months, subject to customary closing conditions and approvals.

Headquartered in Glendale, California, Avery Dennison is a global materials science and manufacturing company specializing in the design and manufacture of a wide variety of labeling and functional materials. Its products include pressure-sensitive materials for labels and graphic applications; tapes and other bonding solutions for industrial, medical and retail applications; tags, labels and embellishments for apparel; and RFID solutions serving retail apparel and other markets.

www.averydennison.com