Global private equity firm TPG has sold cosmetics packaging company HCP Packaging to Baring Private Equity Asia for $775 million.
TPG and its affiliated entities initially acquired HCP from its family owners in 2012 for about $500 million. The transaction was made through TPG Asia Partners V, a 2008-vintage vehicle that raised $3.8 billion. That fund is almost fully invested, according to a source close to the matter.
Baring PE Asia announced the closing of Baring Asia Private Equity Fund VI on its hard-cap of $3.98 billion in February, making it one of the largest funds raised by an Asia-based firm, as reported by Private Equity International.
Acquisitions from that fund include the purchase of global fund administration corporate services firm Orangefield Group in July, following the purchase of corporate trust services Vistra Group in May.
Both TPG and Baring Private Equity declined to comment on details of the HCP transaction.
Under TPG’s ownership, HCP has become the second biggest manufacturer of cosmetics packaging and count the top 10 consumer brands as its customers, said a source with knowledge of the deal.
TPG has also brought in former Asia Pacific president at VWR International Eddy Wu as president and CEO to lead changes in the company.
Founded in Taiwan in 1960, HCP designs, develops and manufactures prestige primary packaging containers for the cosmetics, skincare and fragrance industries. Headquartered in Shanghai, HCP has five production facilities – three in China, one in the US and one in Mexico – and offices in the UK, France, the US, Taiwan and China, according to the company website.
In a letter to its limited partners, TPG reported it has invested $577 million in 2015 and returned $1.55 billion in total to investors this year. Other profitable Asian exits this year include Indonesian bank BTPN, which distributed $225 million to investors, and Indian financial services firm Shriram City Union Finance, with generated a return of close to 4.5x, according to a source with knowledge of the deal.
This year TPG also became a major stakeholder in two Myanmar-based companies, Myanmar Distillery and telecom company Apollo Towers Myanmar.
Photo credit: HCP Packaging