
Carlyle buys China's HCP Packaging from Baring Asia

The Carlyle Group will become HCP Packaging’s third consecutive private equity owner, having agreed to acquire the China-based packaging from Baring Private Equity Asia (BPEA).
The deal size was not disclosed, but it has been reported as approximately USD 1bn. Carlyle is investing via its Asia buyout and Japan funds. The firm closed its fourth pan-regional vehicle on USD 6.55bn in 2018 and then raised USD 2.3bn for its fourth Japan offering in 2020.
According to Debtwire, AVCJ’s sister publication, in April Carlyle was negotiating a debt funding package comprising a USD 415m term loan B, a USD 115m second-lien loan, and a USD 75m revolving credit facility. The overall deal value was put at USD 1.1bn-USD 1.3bn and the debt-to-EBITDA multiple at 6x.
BPEA bought HCP in 2015, generating proceeds of USD 775m for the previous owner, TPG Capital. TPG acquired the business from the Chen family – who founded it in Taiwan in 1960 and expanded into China – in 2012 at a valuation of around USD 500m.
Headquartered in Shanghai, HCP is one of the world’s largest beauty packaging providers with a product portfolio featuring compacts, palettes, lipsticks, pots, jars, and closures. It has 10 manufacturing facilities across China, the US, Mexico, and Europe, and works with over 250 cosmetics, skincare and fragrance brands, including Estée Lauder, L’Oreal, and Shiseido.
During its ownership period, BPEA claims to have strengthened the company’s position as a packaging supplier to colour cosmetics and skincare brands and expanded its product technology and geographic footprint. Alex Lee, a managing director at BPEA, added that HCP had improved its sustainability capabilities as well, through refillable PCR packaging and sustainability-certified manufacturing facilities.
Carlyle plans to help the company further scale its operations and grow its customer base. Other focus areas include exploring strategic acquisitions, strengthening R&D, and facilitating business synergies and alliances with Carlyle’s other portfolio companies in cosmetics, consumer, and manufacturing globally.
“We see long-term growth potential in the beauty and cosmetics industry and believe HCP’s business track record and commitment to R&D and ESG [environment, social, and governance] are market differentiators,” said Wanlin Liu and Dennis Wang, managing directors in Carlyle’s Asia buyout team, in a statement.
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