US-based packaging products company Avery Dennison (Pasadena, California; www.averydennison.com) is to acquire Chinese speciality tape producer Yongle Tape (Zhuozhou Development Zone, Hebei; www.yongletape.com) from private equity firm ShawKwei & Partners (Hong Kong; www.shawkwei.com) for USD 190m (EUR 178m). The acquisition is expected to close in mid-2017.

Yongle’s tapes and related products are used in a variety of industrial markets, including the global automotive industry, with a portfolio of high-value products that are specified by automotive OEMs and their Tier suppliers. It has production facilities in Zhuozhou and Shanghai, and is China’s leading manufacturer of cable harnessing and insulation tapes, Avery Dennison said. In 2016 it generated revenue estimated at USD 160m.

Mitch Butier, Avery Dennison president and CEO, said: “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.”