London-based investment firm 3i Group plc and related funds will acquire a majority interest in cosmetics parts major Geka GmbH of Bechhofen, Germany.
3i announced the deal Feb. 27 but did not disclose terms of the acquisition. Its completion date will depend on when the parties receive competition approvals, said spokeswoman Pilar Gonzales-Gomez in an email.
Geka has production plants in Bechhofen and Elgin, Ill. It manufactured parts in Stanley, Scotland, but sold that operation in 2010.
3i said Geka is a pioneer in the use of plastic injection molding for mascara brushes and packaging. Its customer list includes Procter & Gamble Co., Avon Products Inc. and LVMH. It employs about 650 and generated sales of about 100 million euros ($139 million) in 2011.
The Elgin plant employs about 80 and was established in 2008. In addition to producing cosmetics components for mass markets and specialists, Geka has a subsidiary called Victoria that distributes cosmetic products.
“Geka's innovative strength and long-term partnerships with the leading cosmetics manufacturers put the company in an excellent position to foster growth in its highly attractive and stable market segment,” noted Ulf von Haacke, partner and managing director of 3i Germany, in a news release.
“We are excited about the pro-active partnership with 3i and are ready to step up our growth,” stated Geka CEO Franco Lucá. “Our level of innovation remains a key unique selling proposition. In addition to expanding our business into the Asian and South American markets, we are looking to enter the cosmeceutical market with 3i's support.”
Gonzalez-Gomez said Geka's international expansion plans and any changes to current production operations will be announced at a later date.
3i has held a majority stake in injection hot-runner major Mold-Masters Ltd. since 2007. Hot runners are used extensively in cosmetics packaging to improve aesthetics. Mold-Masters of Georgetown, Ontario, recently announced an expansion of its production operations in China.
3i bought Geka from Dutch investment firm Halder, which held it since 2007.