* TPG makes rare acquisition of family run China business
* Packaging firm HCP’s clients include L‘Oreal and Shiseido
* TPG to bring in new CEO but founding family members to stay with HCP (Adds background, details)
By Stephen Aldred
HONG KONG, July 26 (Reuters) - U.S. buyout fund TPG Capital has acquired China speciality packaging company HCP Holdings Inc from members of the founding Chen family for about $500 million, a source with knowledge of the matter told Reuters.
The two firms confirmed the deal -- a rare example of an acquisition of a family-run business in China -- in a joint statement posted on the website of Shanghai-headquartered HCP Holdings on Thursday, without giving a value.
The sale means TPG acquires all of HCP, the source said, requesting anonymity as financial details of the deal were sensitive. A family-run firm for over 50 years, HCP designs and makes luxury packaging for cosmetics, skincare and fragrance industries. Its clients include L‘Oreal SA and Shiseido.
“The Chen family has built a superb company that has grown from its Chinese heritage to a global leader in its sector. We believe our capital and operational experience can help HCP accelerate its growth and ensure success in the next stage in its development,” said Stephen Peel, Managing Partner, Asia for TPG.
TPG is bringing in a new CEO, but members of the founding Chen family will stay in management roles. Eddy Wu, Asia Pacific president of supply chain and logistics specialists VWR International, will join as chief executive, while current CEO Jeff Chen will stay on as Executive Director and Joanne Chen will continue as HCP’s chief operating officer.
TPG, which has $51.5 billion of assets under management, has previous investments in packaging and retail sectors including Graphic Packaging, Bally, J.Crew and Neiman Marcus.
HCP had previously been in talks with Morgan Stanley’s Asia private equity unit. (Reporting by Stephen Aldred; Editing by Gary Hill and Tim Dobbyn)