Avery Dennison Corp. (NYSE:AVY), Glendale, California, has agreed to acquire Smartrac’s Transponder (RFID Inlay) Division, Amsterdam, the Netherlands, for the purchase price of €225 million (US$249.2 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 €125 million (US$138.4 million).

Smartrac has manufacturing facilities in Germany, Malaysia, China and the United States.

“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."