Avery Dennison (AVY) announced early Wednesday a definitive deal to buy the transponder (RFID Inlay) division of Dutch RFID products manufacturer Smartrac for EUR225 million ($248.8 million), subject to certain adjustments.

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According to Avery, the Smartrac division is estimated to rake in about EUR125 million in 2019 revenue and its combination with Avery’s Intelligent Labels platform will create a business segment with over $450 million in revenue.

Avery said the buyout will be funded with existing cash and credit facilities. The company expects to close the transaction in a few months and estimates the purchase to have “an immaterial impact” to its adjusted EPS in 2020.

Avery Dennison (AVY) announced early Wednesday a definitive deal to buy the transponder (RFID Inlay) division of Dutch RFID products manufacturer Smartrac for EUR225 million ($248.8 million), subject to certain adjustments.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.

According to Avery, the Smartrac division is estimated to rake in about EUR125 million in 2019 revenue and its combination with Avery’s Intelligent Labels platform will create a business segment with over $450 million in revenue.

Avery said the buyout will be funded with existing cash and credit facilities. The company expects to close the transaction in a few months and estimates the purchase to have “an immaterial impact” to its adjusted EPS in 2020.