Shaw Kwei invests in Hong Kong cosmetics industry supplier

The private equity firm has not disclosed financial details but described the commitment as significant. It will work with existing management, including founding CEO Sue Nichols, to pursue strategic acquisitions in Asia, the US, and Europe, while expanding the current services offering.

Established in 1991, ICS is considered a pioneer in modern cosmetics, beauty, and skincare packaging. It has expertise across product design, engineering, and quality control, as well as ethical sourcing, social accountability, and logistical supply chain concerns.

ICS aims to distinguish itself by combining Western design sensibilities with Asian manufacturing skills, which is said to result in superior quality, cost-competitive output. Products include various models of lipstick and eyeliner tubes, compacts, bottles, and containers, as well as syringe-style makeup applicators targeting millennials. 

There is a strong focus on adapting to industry trends in areas such as design aesthetics, recyclable packaging, and 3D-printing manufacturing techniques. Operations extend across Taiwan, mainland China, Australia, and the US, catering to a range of mass-market, independent, and prestige brands. Notable clients include Marc Jacobs, Natio, and Urban Decay.

"We began engaging with Sue in the fall of 2019 and have been impressed with ICS' continued acquisition of new customers,” Kyle Shaw, founder of Shaw Kwei, said in a statement. “Cosmetics and beauty packaging is a $25 billion industry, and Shaw Kwei has always been a long-term investor. This will be the first of multiple acquisitions as we build a global platform with Sue and ICS."

Shaw Kwei invests primarily in middle-market industrial, manufacturing, and related business-to-business services companies via offices in Hong Kong, Singapore, and Shanghai. The firm closed its fourth vehicle in 2018 with $812 million in commitments. This represented a considerable increase in scope from its previous fund, which raised $450 million in 2010.

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• Topics
• Greater China
• Industrials
• Consumer
• Expansion
• Hong Kong (China)
• Shaw Kwei & Partners
• manufacturing