Based in Frick, Switzerland, TexTrace specialises in custom-made woven and knitted RFID products which can be sewn onto or inserted into garments. The business was previously a subsidiary of Jakob Müller Holding, a Swiss OEM for the textiles industry.

The acquisition includes ownership of TexTrace’s portfolio of intellectual property as well as its staff, who will continue to be based in Frick.

TexTrace’s technology provides the opportunity 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,” Avery Dennison stated.

“In the future, it could offer unprecedented supplier and materials information to enable the circular economy through reccommerce and recycling, providing the opportunity to gain insights into the true carbon footprint of the garment.”

Francisco Melo, vice president and general manager of Avery Dennison Smartrac, said the deal was “an exciting acquisition” for the group.

“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 IDs can live with the life of the garment.”

Stephan Bühler, co-owner of Jakob Müller Holding and previous CEO of TexTrace, added: “This step is a great opportunity and a groundbreaking 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 its progression. This comes at the right time with the right partner.”

Glendale, California-headquartered Avery Dennison employs more than 32,000 staff in over 50 countries. Last month the business acquired Dutch garment embellishment specialist Rietveld (RTVPRINT).