Report: Bain has China tea deal brewing

Less than a month after it invested in GOME, the buyout firm is reportedly in exclusive talks to invest up to $50m for a minority stake in Beijing Outsell Health Product Development. The company makes tea as well as cosmetics including weight loss products.

Bain Capital has reportedly beat out other private equity firms and has entered late stage negotiations to acquire a minority stake in Beijing Outsell Health Product Development for up to $50 million, according to Reuters.

Established in 1998, Beijing Outsell researches, develops, produces and sells health products. Its main product line is a range of teas sold under the Benefit brand name. The company also manufactures a series of beauty products and other products aimed at weight loss, adjusting blood fat, reducing blood sugar and blood pressure and enhancing immune capabilities.

Tea: Bain's latest target

Last month, the US-based private equity firm agreed to invest up to $432 million in GOME Electrical Appliances Holding, one of the largest electrical appliances and consumer electronics retailer in mainland China and Hong Kong. It invested $233 million in convertible bonds and can invest up to an additional $199 million in new shares offered by GOME, giving it a stake of between 9.8 percent and 23.5 percent in the company.

Other private equity firms reportedly interested in acquiring stakes in GOME included The Carlyle Group, Kohlberg Kravis Roberts, Warburg Pincus and Hopu Investment Management.

Some of Bain’s other investments in China include Feixiang, a specialty chemical manufacturer; American Standard, a kitchen and bath products manufacturer; Jinsheng International, which operates shopping malls for home decoration, furniture, and electronics retailers; media company SinoMedia; and Tralin Pak, which produces paper-based aseptic packaging for liquid food.

Bain Capital declined to comment. Beijing Outsell could not be reached at press time.