Avery Dennison Corp. said it has agreed to acquire Paxar Corp. in a deal worth $1.3 billion.

The boards of the two companies approved the deal and agreed that Pasadena-based Avery will pay $30.50 per share in cash, a 27 percent premium on the White Plains, N.Y. company’s March 22 closing price.

Avery said Thursday that the acquisition will expand its retail information services sector, which includes Avery’s radio frequency identification label business. Avery also expects to save $90 to $100 million in synergies between the two companies and provide the office supply and label making giant with improved access to Asian markets.

Paxar did about $900 million in sales in 2006. Avery did $5.6 billion.

Shares in Avery closed down 16 cents Thursday to $65.55.