UPM has reached an agreement with SMARTRAC whereby UPM will sell its RFID business to SMARTRAC. UPM will become an indirect shareholder of SMARTRAC with a 10.6% economic interest through the company OEP Technologie.
“We see significant value increase potential in this new combination. Therefore we are pleased to become an indirect shareholder of SMARTRAC,” said Jussi Vanhanen, president of Engineered Materials at UPM.
“The combination of SMARTRAC and UPM RFID will significantly accelerate our momentum as a developer and supplier of passive RFID tags and inlays for all relevant application fields of today and tomorrow”, said Christian Fischer, CEO of SMARTRAC.
The closing of the deal is expected to take place during the first quarter of 2012. The transaction is still subject to regulatory approvals.