 "Avery Dennison acquire China's Yongle Tape for $ 190 mn")
Avery Dennison has acquired Yongle Tape Company Ltd - a manufacturer of specialty tapes and related products used in a variety of industrial markets, including the global automotive industry - from the company’s management and private equity firm ShawKwei & Partners. As per the deal, Avery Dennison will pay $190 million, with additional payment of up to $55 million based on the achievement of certain performance targets over the next two years.
Headquartered in China’s Hebei Province, with production facilities in Zhuozhou and Shanghai, Yongle Tape is China’s leading manufacturer of cable harnessing and insulation tapes. The company is a key supplier to both Chinese and global automakers, with a portfolio of high-value products that are specified by the automotive OEMs and their tier suppliers.
Over its 32-year history, Yongle Tape has built its strong market position with high quality products, competitive pricing, and regular investment in product innovation. Last year, the company generated revenue of approximately $160 million.
“With its well-regarded products and extensive customer relationships, Yongle Tape is an excellent strategic fit with our company and a strong partner for our growing business in industrial materials. This acquisition advances our strategy to expand our global capabilities, while accelerating our growth and increasing our scale in the high-value industrial materials and healthcare segments,” said Mitch Butier, president and CEO, Avery Dennison.
Mike Johansen, vice president and general manager of Avery Dennison’s Industrial and healthcare materials businesses, added, “Yongle Tape will build on our position in the global automotive sector and strengthen our overall product offerings with a range of industrial customers. And with its solid foundation and strong legacy of growth, Yongle Tape will be an excellent fit with our global tapes and fastener businesses - we see many attractive opportunities to innovate and expand the existing product range and customer base of both organisations.”
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