Chinese alternative investment manager CITIC Capital Holdings is in discussions to acquire Paris-based beauty care packaging solutions provider Axilone from Oaktree Capital Management.
In an announcement on Monday, CITIC Capital said it entered into advanced discussions on October 31 with an Oaktree fund for the buyout. The financial terms of the deal were however not revealed.
It may be noted that CITIC Capital emerged as the winner of a bidding process for Axilone that was put up for sale by Oaktree earlier this year. Oaktree had acquired Axilone in 2011. According to a report from Reuters last month, bankers were working on debt financing worth around $406 million (€350 million) to back the sale of Axilone. It was said at the time that the sale had attracted four private equity firms with a presence in China.
Headquartered in Paris and part of the Ileos Group, Axilone is a provider of primary plastic and metal packaging solutions for premium lipstick, fragrance, and skincare sectors. It has subsidiaries in France, Spain, U.S. and China and has manufacturing facilities in France, Spain and China.
“Axilone has enjoyed strong growth during Oaktree’s holding period, and we believe the company is well positioned to continue its trajectory to enhance its leadership in the beauty care packaging category,” Jean Rollier, Managing Director of Oaktree and President and CEO of Ileos Group.
CITIC manages over $21 billion of capital from a diverse group of international institutional investors and its core businesses include private equity, real estate, structured investment & finance, and asset management.
The private equity arm, CITIC Capital Partners, is focused on control buyout opportunities and has made investments in China, Japan, U.S. and Europe with current committed capital at $4.7 billion. Meanwhile, the seller, Oaktree is an investment manager specializing in alternative investments, with approximately $99 billion in assets under management as of June, 2017.
The Axilone transaction is, however, subject to legal and regulatory approvals and could complete by end of this year, the announcement said.
Moelis & Company served as financial advisor and Latham & Watkins served as legal counsel to CITIC Capital. Rothschild & Co served as financial advisor and Weil Gotshal Manges served as legal counsel to Oaktree.