Global investment firm Carlyle has agreed to acquire a 100% stake in HCP Packaging funds affiliated with Baring Private Equity Asia.
WHO: Founded in 1960 and headquartered in Shanghai, HCP is currently one of the world's largest beauty packaging providers with 10 state-of-the-art production and manufacturing facilities across China, the US, Mexico, and Europe. The company has produced many innovative award-winning packaging designs and is dedicated to researching and investing in sustainable packaging solutions for the beauty industry. It works with over 250 leading cosmetics, skincare, and fragrance brands including Estée Lauder, L'Oréal, and Shiseido.
Carlyle is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $325 billion of assets under management as of March 31, 2022, Carlyle employs nearly 1,900 people in 26 offices across five continents.
Baring Private Equity Asia (BPEA) is one of Asia's largest private alternative investment firms. BPEA manages a private equity investment program, sponsoring buyouts and providing growth capital to companies for expansion or acquisitions with a particular focus on the Asia Pacific region, as well as dedicated funds focused on private real estate and private credit. The firm has a 25-year history and over 220 employees located across 10 offices in Beijing, Delhi, Hong Kong, London, Los Angeles, Mumbai, Singapore, Shanghai, Sydney, and Tokyo.
WHY: Carlyle will leverage its deep sector experience in the consumer and manufacturing industries to support HCP as it continues to scale its operations and grow its customer base globally. Carlyle will also work with HCP to help explore global strategic acquisitions, further strengthen the company's leading R&D capabilities, and facilitate business synergies and alliances for HCP with its global network of portfolio companies in the cosmetics, consumer, and manufacturing industries.
IN THEIR OWN WORDS: Eddy Wu, President and CEO of HCP Packaging, 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 centered 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."
Wanlin Liu and Dennis Wang, Managing Directors of the Carlyle Asia Partners advisory team, said: "We are excited to partner with HCP and look forward to working with Eddy and the management team on the company's next phase of global growth and expansion. 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."
Alex Lee, Managing Director at BPEA, said: "We are proud to have supported HCP's growth and evolution into a global leader in packaging during our time with the company. By expanding into new markets, broadening HCP's reach in its home market of China and developing a range of exciting new product offerings through selective bolt-on acquisitions, we're confident that the company is very well positioned to continue growing over the longer-term. We're also proud to have overseen the transformation of HCP's ESG and sustainability capabilities, including developing refillable PCR packages and utilizing sustainability-certified manufacturing facilities, which will leave a more sustainable and environmentally-friendly footprint going forward."
The transaction is subject to customary regulatory approvals and is expected to close in Q3 2022.
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