what we think

Listed XPEL, Inc. (Nasdaq: XPEL), a global leader of protective films and coatings, has acquired assets of the exclusive distributor of XPEL's products in the aftermarket in China. 

R&P's team, consisting of Robin Tabbers, Rogier van Bijnen & Kathleen Cao, was the sole legal support to XPEL from day one, including legal strategy, negotiation, and execution of the deal.

The acquired business is expected to have annual revenues of approximately $45 - $50 million. You may refer to this press release: https://finance.yahoo.com/news/xpel-expands-international-footprint-acquisition-123000648.html

This acquisition is exemplary for the level of foreign investment we see in our practice in China in the past 12 months. Instead of shying away due to geopolitical tensions that caught the news headlines in 2024, and in contrary to overall news reports still issued today, many foreign investors are actually expanding in China instead, given its growth potential, stable investment and political landscape, and long-term consistent government planning.

Besides abundant greenfield foreign investments, acquiring distribution partners down the chain has become a trend for Western brands, certainly in our practice, often in a play to secure existing revenue streams through solidification of the local distribution channels.