HONG KONG (Updated Nov. 15, 8:45 a.m. ET) — Chinese cosmetics packaging molder HCP Holdings Inc. is seeking outside funding for a possible acquisition in
Reuters news service reported Nov. 14 that Morgan Stanley's Hong Kong-based
“We have been seeking Morgan Stanley for consulting purposes and talks of possibly borrowing a… substantial amount of money for an acquisition on a European packaging firm,” said Jack Chen, account manager for the firm and son of HCP President and CEO Jeff Chen, in a Nov. 15 email.
He declined to identify the possible acquisition target.
Morgan Stanley's regional office in
Shanghai-based HCP, which is one of the larger firms in the fragmented cosmetic plastic packaging market, currently has manufacturing in
Its sales have grown rapidly in recent years, from $102 million in 2007 to $160 million last year, with projections for $185 million this year, the company said.
Industry officials estimate it has about 3 percent of the global market for cosmetics plastic packaging.
In an earlier interview Nov. 10 at the CosmoProf Asia 2011 trade fair in
Chen said the company was considering spending at least $12 million to set up a factory there, which he said would let the company shorten lead times, something which is becoming more important to the global cosmetics industry.
The firm counts cosmetics majors including L'Oreal Paris, Procter & Gamble and Maybelline among its customers.
The company anticipates making a decision on the Eastern European factory by early next year, Chen said.
As well, HCP is expanding its
The company is also adding metal pressing and anodizing operations at its factory in Huai'an,
HCP was started in 1960 in
Morgan Stanley has been active in