Avery Dennison, a global leader in pressure-sensitive and functional materials and labeling solutions for the retail apparel market, announced on February 6 that it has agreed to acquire Yongle Tape Co., Ltd., a China’s leading manufacturer of specialty tapes and related products applied in various industrial markets. Yongle Tape will be bought from the company’s management and private equity firm ShawKwei & Partners for $190 million, subject to customary adjustments, with additional earnouts of up to $55 million to be paid on the basis of the achievement of certain performance targets in the next two years. Founded in 1985 and based in China’s Hebei Province, Yongle Tape has rapidly expanded over the past 30 years and now has more than 1,200 employees and two world-class advanced plants in Zhuozhou, Hebei Province and Songjiang District, Shanghai, respectively. As one of the world’s largest PVC tape manufacturers and one-stop producer of polymeric plasticizer, PVC film,pressure-sensitive adhesive materials and tapes, its products are widely used in automotive, electrical and communication industries across 70 countries and regions around the globe. 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. In fiscal year 2016, the company’s total revenues were estimated at RMB¥1.1 billion (about $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,” said Mitch Butier, Avery Dennison president and CEO. “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.” “Avery Dennison and Yongle Tape share a strong commitment to service and continuous innovation,” said Wong Fung, Yongle Tape Chairman. “Avery Dennison brings significant technical and R&D capabilities to this union which will accelerate our product development at Yongle Tape, while its global distribution networks will open new growth opportunities for the Yongle Tape portfolio in Europe and North America.” “Chairman Wong and the management team have built an outstanding business servicing leading customers around the world,” said Kyle Shaw, a director of Yongle Tape and the Managing Partner of ShawKwei & Partners. “It has been a rewarding journey the past several years participating with them in the development of Yongle Tape into a leading pressure-sensitive wire harnessing tape manufacturer.” Subject to customary conditions and regulatory approvals, the acquisition is anticipated to close in mid-2017. The company hopes the acquisition to have an immaterial effect on earnings per share in 2017. Avery Dennison will fund the acquisition with existing cash and credit facilities.