Monday, March, 20, 2023 09:58:37
Avery Dennison Corporation, a renowned US-based producer and distributor of pressure-sensitive adhesive materials, reportedly announced that it has signed a new agreement to acquire the RFID Inlay Division of renowned Dutch RFID product developer, producer, and distributor, Smartrac Technology, for an approximate price of‚¬225 million. The Smartrac RFID Inlay (Transponder) Division is at the forefront of the development and production of RFID products. It is projected that the division would generate revenue of about‚¬125 million (approx. $140 million) in 2019. The unit currently employs about 900 employees. This RFID inlay and tags business would expand the existing product portfolio of Avery Dennison. Additionally, it will improve the R&D efforts of the company, boost sales and production capacity, and grow its RFID offerings for a wide variety of customer demands and applications. The agreement would also offer the opportunity to expand market coverage and boost opportunities for RFID growth. This integration builds a platform that has revenues of more than $450 million. This would further provide long term profitability and growth over the company average along with robust R&D capabilities, extended product lines, and an added production capacity. CEO, President and Chairman of Avery Dennison, Mitch Butier stated that the acquisition of Smartrac Transponder Division is a continuation of the company’s plan to invest, organically as well as through M&A, to direct the company’s portfolio towards higher value, faster-growing categories. Butier further added that the Transponder Division is an excellent strategic fit for the company. It would boost Avery’s strategy further towards the expansion of the company’s Intelligent Labels platform in various markets and customers in the retail and industrial segments. This would also extend the company’s reach to new channels. Chairman and CEO of the Management Board of Smartrac, Christian Uhl stated that the company’s employees and capabilities are a perfect fit to Avery Dennison, thus together they can better expand into the market. Uhl added that the company is confident that its RFID inlays and tags business would witness a rapid growth in the future as a part of the Intelligent Labels business. Intelligent Labels is set to rapidly grow in the market due to the growth of IoT as well as rising consumer demand for connected products.   Source credit: