Avery Dennison Corp. on Monday completed its acquisition of Yongle Tape Co., a Chinese manufacturer of cable harnessing and insulation tapes for automakers. The transaction had been announced Feb. 6.
Yongle will collaborate with Avery Dennison’s performance tapes and fastener solutions businesses as part of the company’s industrial and health care materials division. The segment generated roughly $117 million of the company’s $1.6 billion in net sales in the first quarter, a 2-percent increase year-over-year, according to filings with the Securities and Exchange Commission.
The labels and pressure-sensitive materials company purchased Yongle for $190 million from private equity firm Shaw Kwei & Partners in Hong Kong. Avery Dennison funded the transaction through a combination of cash and credit, according to the firm. Additionally, it will pay up to $55 million in earnouts over the next two years, contingent on Yongle’s completion of specific performance targets.
Avery Dennison (AVY) is headquartered in Glendale and employs roughly 25,000. The company’s stock on Monday rose 12 cents, a fraction of 1 percent, to close at $88.17 on the New York Stock Exchange.