CITIC Capital nears buyout of packaging player Axilone
China-focused GP CITIC Capital has entered into advanced negotiations with Oaktree Capital Management to buy Axilone, a Europe-headquartered packaging supplier to the cosmetics industry.
The private equity firm said in a statement that the deal, which is subject to various regulatory approvals, could close before the end of the year. Oaktree has owned the business since 2011 and launched a sale process over the summer, reportedly seeking around EUR350 million ($406 million).
Headquartered in Paris, Axilone provides primary plastic and metal casings for lipstick, fragrance, and skincare products, working with leading beauty and personal care companies around the globe. The company has subsidiaries in France, Spain, the US, and China, and manufacturing facilities in France, Spain, and China.
Axilone, which was previously known as Nord-Est, is part of the Ileos Group, a producer of packaging for the fragrance, cosmetics and wine and spirits markets. Oaktree made several bolt-on acquisitions and reorganized the company into three business units: Axilone, perfume samples and promotions specialist Bioplan, and soft packaging provider Ileos Graphic.
“Axilone is a leading player in the beauty care packaging sector, serving leading customers globally with unparalleled product quality and service. We are committed to working with the talented management team to continue to tap into the enormous potential in the space, and take their success to the next level globally,” said Hanxi Zhao, a senior managing director at CITIC Capital.
The investment would come from CITIC Capital China Partners III, which is expected to close at $2 billion. The private equity firm has already closed the US dollar-denominated portion at the hard cap of $1.57 billion and is seeking a further RMB3 billion ($439 million) in renminbi. CITIC previously pursued separate China and international strategies but the teams have been combined for this fund.
Other recent international transactions include the acquisition of the sexual health division of Australia-listed medical products supplier Ansell for $600 million. The GP partnered China’s Humanwell Healthcare on the deal.
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