US-based investment firm Carlyle has entered an agreement to purchase a 100% stake in Chinese cosmetic packaging company HCP Packaging (HCP).

Based in Shanghai, HCP engages in researching and investing in sustainable packaging solutions, operating ten production and manufacturing facilities across China, the US, Mexico and Europe.

The company collaborates with more than 250 leading cosmetics, skincare and fragrance brands, including Estée Lauder, L’Oréal and Shiseido.

Carlyle is acquiring HCP from funds affiliated with Baring Private Equity Asia (BPEA) for an undisclosed sum.

The investment firm will offer its sector experience in the consumer and manufacturing industries to expedite HCP’s operations and expand its customer reach.

In addition, Carlyle will work with HCP to strengthen the company’s research and development (R&D) capabilities through strategic acquisitions.

HCP president and CEO Eddy Wu said: “We are delighted to partner with Carlyle and to have a new owner with such high calibre.

“We look to leverage Carlyle’s global platform strengths for our next phase of growth and as we expand our leading market position internationally.”

Carlyle Asia Partners advisory team managing directors Wanlin Liu and Dennis Wang said: “We are excited to partner with HCP and look forward to working with Eddy and the management team on the company’s next phase of global growth and expansion.

“We plan to leverage the strengths of our global platform, deep industry and market expertise, and synergies from our extensive network of portfolio companies in the consumer and manufacturing sectors to help HCP capture new growth opportunities and take the company to the next level.”

The deal is expected to close in the third quarter of this year subject to customary regulatory approvals being given.

It will be funded by affiliates of Carlyle Asia Partners and Carlyle Japan Partners, two of Carlyle’s buyout funds in Asia.