TPG confirms acquisition of China’s HCP

The leveraged buyout is said to be backed by a five-year loan of $300 million from a consortium of several banks.

The private equity firm plans to bring in Eddy Wu, formerly Asia Pacific president at VWR International, as CEO in early August. Current CEO Jeff Chen, one of the previous family owners, will stay on as executive director, while Joanne Chen will continue as COO.

"The Chen family has built a superb company that has grown from its Chinese heritage to a global leader in its sector," Stephen Peel, managing partner of TPG, said in a press release. "We believe our capital and operational experience can help HCP accelerate its growth and ensure success in the next stage in its development."

It was previously reported that Morgan Stanley Private Equity Asia had been in talks with HCP, with a view to purchasing 80% of the company for around $500 million.

Founded in 1961 in Taiwan, HCP manufactures the packaging for a wide range of cosmetics, such as compacts, lipsticks and mascara. Its clients include L'Oreal and Shiseido.

TPG is in the process of raising its latest Asia buyout fund, with a reported target of $4 billion. Earlier this year it reached a first close on its two China funds, having received commitments of RMB4 billion ($635 million). Both vehicles launched in August 2010 and are joint ventures with local governments.

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• Topics
• Greater China
• Buyouts
• Consumer
• TPG Capital
• China
• buyout
• Consumer