Clifford Chance advised Avery Dennison, a US-based global leader in labeling, product and packaging material solutions, on its acquisition of Yongle Tape Company Ltd., a manufacturer of specialty tapes and related products used in a variety of industrial markets, including the global automotive industry. Yongle Tape will be acquired from the company's management and private equity firm ShawKwei & Partners for the purchase price of US$190 million, subject to customary adjustments. The agreement also includes additional earnouts of up to US$55 million which will be based on the achievement of certain performance targets over the next two years.

Partner Kelly Gregory led on the transaction with support from counsel Yang Yi and associate Luyi Sun.

Kelly said, "Our team continues to advise on interesting inbound transactions such as this one by a US buyer. China continues to be a lucrative market for investments enabling multinational companies to expand their global capabilities, existing product range and customer base."

Headquartered in China's Hebei Province, with production facilities in Zhuozhuo and Shanghai, Yongle Tape Company is China's leading manufacturer of cable harnessing and insulation tapes. The company is a key supplier to both Chinese and global automakers across 70 countries and regions around the globe, with a portfolio of high-value products that are specified by the automotive OEMs and their Tier suppliers.