In a bid to improve its global tapes and fasteners business, packaging material supplier Avery Dennison has acquired Yongle Tape Company Ltd., said to be one of the world’s largest PVC tape manufacturers, for US$190 million.
Headquartered in China’s Hebei Province, with production facilities in Zhuozhou and Shanghai, Yongle Tape is “a key supplier” to both Chinese and global automakers, Avery Dennison said, with a portfolio of high-value products that are specified by the automotive OEMs and their tier suppliers.
Yongle Tape reported revenues of approximately US$160 million in 2016.
“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’s 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.”
“Yongle Tape will build on our position in the global automotive sector and strengthen our overall product offerings with a range of industrial customers,” added Mike Johansen, vice president and general manager of Avery Dennison’s Industrial and Healthcare Materials businesses. “And with its solid foundation and strong legacy of growth, Yongle Tape will be an excellent fit with our global tapes and fastener businesses.”
