Bain Capital Private Equity is acquiring two cosmetics packaging firms – one based in the US and another in China – which will be merged to create an integrated player in the industry, according to a statement.
Bain is acquiring US-based World Wide Packaging LLC and an unnamed Chinese cosmetics packaging maker.
Financial terms of the transaction were not disclosed.
“Bringing together World Wide Packaging’s strong design capabilities, rich library and fast turnaround times, with reliable manufacturing capabilities in China, the combined entity will be well-placed to provide innovative solutions to beauty brands in the US and beyond,” Bain Capital said, in an announcement on Tuesday.
World Wide Packaging provides the cosmetics and personal care industries with packaging components, custom and stock molding, and full service turnkey operations. Among its clients are brands including Estee Lauder, L’Oreal, Shiseido, Dermalogica and Milk Makeup.
After the acquisition, the senior management team at World Wide Packaging will remain in place, with CEO Barry Freda continuing to lead the company in this new venture, the announcement said.
“With this deal, the combined entity will have a customer-facing function primarily in the US, and manufacturing, sales and marketing operations in China,” said Jonathan Zhu, a Managing Director at Bain Capital Private Equity.
The firm is also looking to enhance the company’s presence in the independent beauty market and grow its presence among large beauty players, in the US and beyond, particularly in China, where demand for cosmetics is growing three times as fast as the US, Zhu said.
Bain Capital invests across asset classes including credit, public equity and venture capital, managing approximately $95 billion in total and among its other investments in the consumer industries are Carver Korea, Canada Goose, and Blue Nile, among many others.