Carlyle, Primavera in Second Round of Bidding for BPEA’s HCP

(Bloomberg) -- Carlyle Group Inc. and Primavera Capital are among shortlisted bidders for Baring Private Equity Asia’s Chinese packaging business HCP, according to people familiar with the matter.

Other buyout firms in the race include PAG and DCP Capital, the people said, asking not to be identified because the information is private. The sale process is moving into a second round of bidding, and could value the Shanghai-based business at about $1.5 billion, the people said.

BPEA, as the private equity firm is also known, has revived plans to dispose of HCP after an attempt last year to sell the business failed amid the coronavirus pandemic, the people said. Bloomberg News reported in 2019 that BPEA had kicked off the process. 

Deliberations are still ongoing and there’s no certainty the bidding would result in a transaction, the people said. Representatives for Baring, Primavera and PAG declined to comment, while Carlyle and DCP Capital didn’t immediately respond to requests for comment. 

Founded in 1960, HCP designs, develops and makes packaging containers for the cosmetics and toiletries industries. It has about 10 manufacturing locations in Asia, North America and Europe, and serves more than 250 customer brands, according to its website.

Baring bought HCP from rival buyout firm TPG Capital in 2016 for an undisclosed amount. HCP has expanded in part by acquiring SIMP the same year, Germany’s Rusi Cosmetic the following year and Hetian Packaging in 2020.

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With assistance from Bloomberg