3i acquires majority stake in German cosmetic packaging firm Geka

Infrastructure and debt management-focussed private equity firm 3i, is to acquire a majority stake in Geka, a German manufacturer of brushes, applicators and comprehensive packaging systems for the cosmetics industry, for an undisclosed sum.

Bechhofen, Germany-based Geka, which is being acquired from Halder, an investor focused on medium-sized businesses, serves both the mass market and premium segment for packaging in the cosmetic industry.

It also distributes cosmetics products through its wholly-owned subsidiary Victoria Cosmetics.

Founded in 1925, Geka has a broad patent and product portfolio. It is a pioneer in innovation of plastic injection moulding for mascara brushes and mascara packaging and develops for international cosmetics groups including Procter & Gamble, Avon and LVMH.

Geka, which generated revenues of approximately €100 million in 2011, has production facilities in Bechhofen and in Elgin, Illinois.

Geka is looking for future growth by expanding its business into emerging markets, especially into China and Brazil.

Ulf von Haacke, partner and managing director of 3i Germany, said, "Geka's innovative strength and long-term partnerships with the leading cosmetics manufacturers put the company in an excellent position to foster growth in its highly attractive and stable market segment. We are convinced that we can support the company's expansion and development by providing it with access to growth capital and 3i's international network."

Franco Lucá, CEO of Geka, said, "We are excited about the pro-active partnership with 3i and are ready to step up our growth. Our level of innovation remains a key unique selling proposition. In addition to expanding our business into the Asian and South American markets, we are looking to enter the cosmeceutical market with 3i's support."