CDIB, Firstred, Huatai buy China cosmetics packaging business

This is the maiden investment under CDIB’s middle-market buyout program, which was established in 2019 with the hiring of Alex Ying, previously of The Carlyle Group, as head of buyouts. The strategy, known as CDIB Buyout Partners, targets Greater China with a view to supporting companies through commercial, operational, and governance improvement initiatives.

“As part of our value-add initiatives, CDIB Buyout Partners expects to promote the growth and margin expansion of Yuga Holdings by leveraging the consortium partners’ respective platforms, with deep roots both locally within China and globally, while bringing operational and strategic directives to deliver significant product and performance enhancement to an expanded customer base,” Ying said in a statement.

Yuga offers a one-stop-shop for customized cosmetics packaging for both established international brands and new independent domestic players. The company claims to have made 2.4 million pieces of packaging for 189 clients and supported 42 brand launches to date. Last year, it invested $15 million in a new factory in Taizhou.

The acquisition coincides with the appointment of Tony Zhang as Yuga’s new CEO. Zhang has 16 years of experience in the cosmetics packaging industry, including seven as Asia sales vice president for US-based HCT Group, a global leader in the segment. The investment also potentially complements at least two existing CDIB portfolio companies in Korea: skin and haircare maker ECIS Cosmetic and facial mask specialist L&P Cosmetic.

Firstred Capital was established in 2019 by M&A veteran Xiaodan Liu, formerly CEO and chairwoman of Huatai United Securities, a subsidiary of Huatai Securities, which manages Huatai International Private Equity Fund. The Beijing-based GP invests in growth and buyout opportunities across consumer, healthcare, and industrial technology. In January, it closed its debut fund at RMB6.8 billion ($1 billion) and launched a US-dollar vehicle targeting $500 million.

Huatai International Private Equity Fund claims extensive experience in healthcare, advanced manufacturing, consumer, and telecom, media, and technology. It also leverages the resources of its parent’s global network, which includes subsidiaries in Hong Kong and New York.

Both Firstred and Huatai have connections to Sequoia Capital China. Sequoia holds a 12% stake in Firstred’s management company, having previously invested in Huatai United’s direct investment arm.

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• Topics
• Greater China
• Industrials
• Support services
• Buyouts
• China
• CDIB Capital
• Firstred Capital
• manufacturing
• Logistics