TPG buys China packaging firm HCP for $600m - report
TPG Capital has reportedly acquired Chinese packaging company HCP Holdings for around $600 million through a leveraged buyout. The news comes after an earlier attempt by Morgan Stanley's Asia private equity arm to purchase 80% of the company for around $500 million.
The HCP buyout is said to be backed by a five-year loan of $300 million from a consortium of several banks, including Citigroup, DBS, Chinatrust Commercial Bank and Cathay Bank.
A purchase agreement was signed by TPG several weeks ago. The private equity player will retain HCP's management for the timebeing, Reuters reported.
Founded in 1961 in Taiwan, HCP's product range includes the manufacturing and finishing of compacts, kits, lipsticks, jars, closures, promotional items and mascara and lip gloss containers. Cosmetics groups L'Oreal and Shiseido are among its clients.
The company entered mainland China in 1995 with a plant in Guangzhou, and further scaled up its business through expanding into Suzhou and Shanghai.
In February, TPG reached a first close on its two China funds, having received commitments of RMB4 billion ($635 million). Both funds launched in August 2010 and are joint venture partnerships with local governments.
The TPG Shanghai RMB Fund is backed by the Shanghai municipal government and Pudong New Area government and will invest in mid- to large-size companies, principally in the financial services, consumer, retail and healthcare industries.
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