Japan's Advantage buys Malaysian packaging manufacturer

The Japanese GP said that four investments had already been made from the vehicle on announcing the final close last month. They included Plastic Centre, Beijing-based Korean restaurant operator Zheng Yi Wei, a Taiwanese egg manufacturer, and a Chinese education business. The names of the latter two companies were not disclosed because the deals have yet to close, AVCJ understands.

The size of the Plastic Centre investment has not been made public, but the Advantage Partners Asia Fund writes checks of $20-70 million. There must be a Japan angle for all its portfolio companies, whether that involves market entry, acquiring local businesses, or leveraging Japanese expertise in areas such as branding, technology, and advanced management techniques.

Founded in 1972 as a producer of rigid plastic bottles, Plastic Centre has since diversified its business to include contract manufacturing of home care and personal care products. It works with numerous multinationals in the fast-moving consumer goods (FMCG) space, including Johnson & Johnson, Avon, Reckitt Benckiser, Nestle, and Unilever.

Advantage has taken a controlling stake, but the founding family is re-investing alongside the GP and will remain involved in management. The private equity firm plans to accelerate business growth and improve operational efficiency. It said in a statement that companies in Southeast Asia could benefit from cross-border collaboration with Japanese businesses and industry experts.

Advantage started investing outside of Japan through its fourth domestic fund, completing four deals. The firm opened a Hong Kong office in 2008 and now has bases in Shanghai and Singapore, as well as Tokyo. Its most recent Japan-focused vehicle closed last year at JPY60 billion ($535 million).

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• Topics
• Southeast Asia
• North Asia
• Buyouts
• Industrials
• Malaysia
• Japan
• Advantage Partners
• manufacturing