Avery Dennison to Acquire Smartrac’s RFID Inlay Business
November 20 2019 - 6:30AM
Business Wire
Enhances Capabilities for Rapidly Growing
Intelligent Labels Platform
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.
“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.
“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 of the Management Board, Christian
Uhl, added: “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.
The acquisition is expected to have an immaterial impact to the
Company’s adjusted earnings per share in 2020. Avery Dennison 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.
About Avery Dennison
Avery Dennison Corporation (NYSE: AVY) is a global materials
science and manufacturing company specializing in the design and
manufacture of a wide variety of labeling and functional materials.
The company’s products, which are used in nearly every major
industry, 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 radio-frequency identification
(RFID) solutions serving retail apparel and other markets.
Headquartered in Glendale, California, the company employs
approximately 30,000 employees in more than 50 countries. Reported
sales in 2018 were $7.2 billion. Learn more at
www.averydennison.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20191120005219/en/
Avery Dennison Corporation Media Relations Rob Six (626)
304-2361 rob.six@averydennison.com or Investor Relations Cindy
Guenther (626) 304-2204 cynthia.guenther@averydennison.com
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