Smartrac Technology Group, a global leader in RFID technology and IoT solutions, today announced that it has reached a definitive agreement to sell its RFID Transponder Division to Avery Dennison Corporation.
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.
Smartrac's RFID inlay and tags business will complement Avery Dennison’s Intelligent Labels platform, expand its existing product portfolio, enhance the company’s R&D, manufacturing and sales capacity and increase its RFID offerings for a broad variety of customer requirements and applications.
The transaction will also provide the opportunity to expand market coverage and to accelerate RFID growth opportunities.
“What we are announcing today is a big change in Smartrac's history. 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,” said Christian Uhl, CEO and Chairman of the Management Board at Smartrac.
“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 accelerate our strategy and deliver on this vision across multiple verticals.”
As 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. The acquisition is subject to regulatory approvals and other customary closing conditions.