Executive Summary

On November 20, 2019, Avery Dennison announced it had signed a definitive agreement to acquire Smartrac’s Transponder (RFID Inlay) division for €225 million ($248 million). The acquisition is expected to close within a few months.

• Smartrac’s Transponder division is a leader in the development and manufacture of RFID products and expects to generate 2019 global revenues of approximately $140 million.
• The business complements Avery Dennison’s Intelligent Labels platform, expands its existing product portfolio, enhances the company’s R&D, manufacturing and sales capacity, and increases its RFID offerings.
• It will also help Avery Dennison expand into a variety of end markets, reach customers in the industrial and retail segments, and expand into new channels.
• The acquisition should increase Avery’s global scale and presence and increase its revenues by about 45% to $450 million annually. The company expects to fund the transaction with existing cash and credit facilities.