Bain Capital to merge US-based WWP with Chinese player

Financial terms and details of the Chinese firm were not disclosed. Bringing together WWP’s design capabilities with manufacturing capabilities in China, the combined entity is expected to provide integrated packaging solutions to beauty brands in the US and other markets, the GP said in a statement.

Established in 1980, WWP provides the cosmetics and personal care industries with a range of packaging components, custom and stock molding, and full-service turnkey operations. It has manufacturing facilities in the US and China, serving international brands including Estee Lauder, L’Oreal, Shiseido, Dermalogica and Milk Makeup.

“We look forward to working with WWP to preserve and enhance its presence in the independent beauty market and grow its presence among large beauty players, in the US and beyond, particularly in China, where demand for cosmetics is growing three times as fast as the US,” said Jonathan Zhu, a managing director at Bain Capital.

The private equity firm has made several investments in the beauty industry, with a view to tapping into Asia's high growth market. Last year, it sold a majority stake in Carver Korea, a specialist cosmetics supplier, in a transaction worth EUR2.27 billion ($2.7 billion) alongside Goldman Sachs. Bain also bought a controlling stake last year in Hugel, a Korean manufacturer of botox and other health-related pharmaceuticals.

Recent transactions in the cosmetic packaging sector include CITIC Capital’s acquisition of Axilone, a Europe-headquartered packaging supplier to the cosmetics industry. The deal facilitated an exit for Oaktree Capital Management.

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• Topics
• Greater China
• Buyouts
• Consumer
• China
• Bain Capital Asia
• USA