Baring Private Equity Asia is considering a sale of its Chinese packaging business, which could be valued at more than $1 billion, people with knowledge of the matter said.
Baring is working with a financial adviser to prepare for divesting Shanghai-based HCP Packaging after drawing interest from potential suitors, the people said, asking not to be identified discussing private deliberations.
Founded in 1960, HCP designs, develops and makes packaging containers for the color cosmetics, skincare, fragrance and toiletries industries. It has nine manufacturing locations in Asia, North America and Europe, and more than 250 customer brands.
Baring bought HCP from rival buyout firm TPG Capital in 2016 for an undisclosed amount. Since then, HCP has expanded in part through acquisitions, announcing the purchase of SIMP in September 2016 and the takeover of Germany’s Rusi Cosmetic a year later.
A formal sale process could start early next year, the people said. Deliberations are still at a preliminary stage and no final decision has been made. A representative for Baring declined to comment.
Baring, founded in Hong Kong in 1997, is on track for its busiest dealmaking year since at least 2008 with about $5.6 billion of transactions, data compiled by Bloomberg show. Recent acquisitions include Pioneer Corp., a Japanese maker of audio and video equipment.