TPG Capital acquires Chinese cosmetics packaging firm HCP Holdings for $600 mn
10 Jul 2012
US private equity fund TPG Capital acquired Chinese packaging company HCP Holdings Inc, for around $600 million, Reuters yesterday reported, citing a report from its publication Basis Point.
Founded in 1960 in Taiwan by its current chairwoman Shen Fang Chen, HCP Holdings switched its business operations to China in 1989.
Shanghai, China-based privately-owned HCP Holdings is a cosmetics packaging molder with manufacturing units located in China, the US and Mexico.
With about 3 per cent of the global market for cosmetics plastic packaging, the company has seen its sales grow rapidly in recent years, from $102 million in 2007 to $160 million in 2011, and has projected revenues of $185 million for the current financial year.
The firm has cosmetics giants including L'Oreal Paris, Procter & Gamble and Maybelline among its customers.
HCP Holdings obtained latest technologies for the development and production in cosmetics packaging and international exposure after it acquired bankrupt New Hampshire, US-based Bridgeport Metal Goods in 2004 for an estimated $6.5 million.
It is constructing a new production plant in Mexico by the end of February 2010, and has plans to build another one in Europe, in order to tap the East European market.
Reuters had reported in November 2011 that Morgan Stanley's Hong Kong-based Asia private equity unit was in talks to buy a majority 80 per cent stake in HCP Holdings for $500 million.