Finnish forest industry company UPM-Kymmene Corporation (OMX: UPM1V) has agreed to sell its UPM RFID business to SMARTAC in exchange for a 10.6% indirect economic interest in SMARTAC through OEP Technologie B.V. The transaction, which is still subject to regulatory approval, would further add to SMARTAC’s lead as the company with the widest RFID business portfolio. The closing of the deal is expected in Q1 2012.
UPM RFID is world number one in HF, NFC and UHF radio frequency identification (RFID) tags and inlays (with product uses in RFID labels, hangtags, hard tags and on-metal tags) and is a part of UPM’s Engineered Materials business group. UPM RFID was established in 1997 and has production sites in Fletcher, North Carolina, USA and in Guangzhou, China (UPM Raflatac production sites) with a global network of sales offices.
SMARTAC N.V has about 3300 employees and is focused in RFID as one of the global leaders in RFID inlays for electronic passports in contactless credit cards and in RFID transponders for public transportation applications. SMARTAC is majority owned (also through OEP) by JPMorgan Chase & Co One Equity Partners LLC., via a public offer in 2010 for the then Frankfurt Stock Exchange listed firm. The company has 10 factories worldwide and already has NFC and UHF RFID tags and inlays production site in Kulim, Malaysia.
RFID technology is used to identify, track and trace objects and UPM feels that there is greater potential reward when taking part in a larger player in this growing field, especially as the business has little relation with UPM’s other activities. SMARTAC has been actively seeking growth opportunities, with recent acquisitions of Neology Inc. and KSW Microtec AG in December followed by a capital increase this Monday.
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