Avery Dennison Corporation has acquired TexTrace, a technology developer that specialises in custom-made woven and knitted RFID products which can be sewn onto or inserted into labels and garments.

TexTrace was formerly a subsidiary of Jakob Müller Holding, a Swiss OEM for the textile industry, and is located in Frick, Switzerland.

The acquisition includes ownership of TexTrace’s portfolio of intellectual property, and its employees that will continue to be based in Frick, Switzerland.

Avery Dennison said this move enables it to continue to innovate and drive adoption within the apparel sector and unlock opportunities in non-apparel segments.

Avery Dennison Smartrac vice-president and general manager Francisco Melo said the technology developed by TexTrace provides the opportunity for businesses to fully integrate RFID into garments.

Brand labels with built-in RFID are an all-in-one solution for product branding, brand and theft protection, product availability, consumer interaction and enhanced convenience, such as self-checkout.

Melo added that in the future, it could offer unprecedented supplier and materials information to enable the circular economy through rec-Commerce and recycling, providing the opportunity to gain insights into the true carbon footprint of the garment.

“This is an exciting acquisition for Avery Dennison, expanding our digital ID portfolio to offer integrated RFID solutions for the apparel industry,” Melo said.

“The innovative woven and knitted RFID products that TexTrace has developed, will add significant value to the traditional way the apparel and retail sector uses RFID, creating the opportunity for a more sustainable and intelligent future where digital ID’s can live with the life of the garment.”

Former CEO of TexTrace and co-owner of Jakob Müller Holding Stephan Bühler said this step is a great opportunity and decision for the future of TexTrace.

“We are proud of what the start-up has achieved in its 10-year company history and we are very pleased that we can now enable it to take the next step in it’s progression. This comes at the right time with the right partner,” he said.