Established in 1960 and headquartered in Shanghai, HCP provides cosmetic packaging solutions with its 10 manufacturing facilities spread across China, the US, Mexico, and Europe
Carlyle to acquire 100% stake in HCP Packaging from Baring Private Equity Asia. (Credit: pmvchamara .com from Pixabay)
US-based investment firm Carlyle has signed an agreement to acquire a 100% stake in China-based HCP Packaging from funds affiliated with Baring Private Equity Asia (BPEA) for an undisclosed sum.
Established in 1960 and headquartered in Shanghai, HCP provides cosmetic packaging solutions with its 10 manufacturing facilities spread across China, the US, Mexico, and Europe.
The company is committed to researching and investing in eco-friendly packaging for the beauty industry. It works with more than 250 cosmetics, skincare and fragrance brands, including L’Oreal, Estée Lauder, and Shiseido.
With its experience in the consumer and manufacturing industries, Carlyle will help HCP build its operations and expand its customer base globally.
The investment firm will also assist HCP in exploring global strategic acquisitions, enhancing the company’s outstanding R&D capabilities, and facilitating commercial synergies and partnerships with its global network of portfolio firms in the cosmetics, consumer goods, and manufacturing industries.
The transaction will be funded by Carlyle Asia Partners and Carlyle Japan Partners affiliates, two of Carlyle’s Asian buyout funds.
HCP Packaging president and CEO Eddy Wu said: “We are incredibly proud of our journey to become a leading cosmetics packaging manufacturer and would like to thank BPEA for their support over the past six-and-a-half years.
“Our strategic priorities continue to be centred on driving sustainable packaging innovation and delivering top-quality services and best-in-class operational excellence to our customers around the world.
“We are delighted to partner with Carlyle and to have a new owner with such high calibre. We look to leverage Carlyle’s global platform strengths for our next phase of growth and as we expand our leading market position internationally.”
Carlyle Asia Partners advisory team managing directors Wanlin Liu and Dennis Wang said: “We see long-term growth potential in the beauty and cosmetics industry and believe HCP’s business track record and commitment to R&D and ESG are market differentiators.
“We plan to leverage the strengths of our global platform, deep industry and market expertise, and synergies from our extensive network of portfolio companies in the consumer and manufacturing sectors to help HCP capture new growth opportunities, and take the company to the next level.”
The deal is expected to complete in the third quarter of 2022, subject to customary regulatory approvals.