UPM has sold its RFID business to Smartrac. Smartrac expects the acquisition to strengthen its position in the RFID tags and inlays business.
UPM has completed the sale of its RFID (Radio Frequency Identification) business to Smartrac. UPM’s RFID business, consisting of three companies in Finland, China and the United States, has been transferred to the Netherlands-based RFID specialist on 31 March 2012, following clearance by all competent authorities.
UPM and Smartrac entered into an agreement in December last year. Under the deal, UPM becomes an indirect shareholder of Smartrac with a 10.6 percent economic interest through the company OEP Technologie B.V., a holding company controlled by One Equity Partners and one of the major shareholders of Smartrac.
Smartrac is said to be one of the global market leaders in high-quality RFID inlays for electronic passports and contactless credit cards, as well as for RFID transponders for public transport applications. As part of the integration of UPM RFID into the Smartrac Group, the three companies will change their names into Smartrac, the Dutch company said.