Aureos invests in Filipino cosmetics retailer HBC

According to private equity firm, HBC is the Philippines' largest in-house branded cosmetics and beauty products retailer, with 197 stores in across the country, nine local franchise stores and three foreign franchise stores in the US and Bahrain.

The investment comes as the Philippines claims 7% year-on-year growth in its cosmetics industry and HBC has posted double-digit sales growth, Aureos noted in a statement.

"HBC is a leading player in the Philippine health and beauty industry, and is enjoying sales growth outpacing its competitors in a fast-growing market as it focuses on its core values of providing affordable high quality products for a broader mass market which is the C and D category," said Danny Lizares, partner in Aureos' Philippines office.

The investment, finalized last month, enabled HBC to acquire convenience-format healthcare chain Save More Drug Store, incorporating its 55 outlets to its portfolio branded goods. Pending its growth ability, HBC hopes to make its public offering in the next 3 to 4 years, president Noel Manucom added.

Aureos specializes on investments in SMEs in emerging markets. The firm is currently raising its second Southeast Asia fund, ASEAF II, with a target of $200 million. That vehicle will invest in markets including Indonesia, Thailand, Vietnam, the Philippines and Malaysia, and counts Sarona Frontier Markets Fund I as an LP.

The firm is additionally targeting a year-end close for a $200 million fund that will invest in India, Sri Lanka and Bangladesh.

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• Topics
• Southeast Asia
• Consumer
• Philippines
• Consumer
• Aureos Advisers (Aureos Capital)
• Growth capital