TPG sells HCP Packaging to Baring, returns $1.55b to LPs in 2015
TPG Capital has returned $1.55 billion to investors from its Asia portfolio in 2015, including $775 million from the sale of HCP Packaging to Baring Private Equity Asia.
The private equity firm has also invested $577 million over the course of the year, taking the total committed from the sixth pan-Asian fund to $1.4 billion. There was a further $383 million in co-investment. Reuters reported the news and AVCJ has since verified it with a source familiar with TPG.
TPG acquired HCP, one the largest global suppliers of packaging materials to the cosmetics, skincare and fragrance industries, through a leveraged buyout worth approximately $500 million in 2012. The seller was the founding Chen family, which set up the business in Taiwan over 50 years ago, and took it into China. They wanted third-party capital to support continued expansion.
According to Debtwire, a $360 million refinancing was completed early this year through a group of Taiwanese banks, with most of the proceeds earmarked for a dividend payment. The sale of HCP to Baring was finalized at the end of last week, the source said.
Other full exits for TPG in 2015 include Australian hospital operator Healthscope. TPG privatized the business with The Carlyle Group in 2010 and re-listed it last year. Having sold a portion of shares in the IPO, the two PE firms completed their exit through two block trades in September and November worth approximately $1.2 billion between them.
TPG also made another partial exit from Indonesian lender Bank Tabungan Pensiunan Nasional (BTPN), alongside co-investor Northstar Group. They sold a 17.5% stake to Sumitomo Corp. for IDR5.93 trillion ($461.8 million) as part of an earlier agreement that will see the Japanese company take a 40% interest in BTPN, conditional on regulatory approval.
TPG closed its latest Asian fund at $3.3 billion in May 2014. Recent investments include the purchase of a 50% stake in Myanmar Distillery Company Group (MDC), the Southeast Asian country's leading manufacturer and distributor of spirits.
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