Asia buyout division of Morgan Stanley negotiating to acquire about 80% of Taiwan-based packaging manufacturer HCP Holdings, in deal valued at about US$500M, sources say

Bdebbie Garcia

LOS ANGELES , November 15, 2011 (Industry Intelligence) – Talks are under way for a majority stake in Taiwan-based packaging manufacturer HCP Holdings Inc., according to four knowledgeable sources, reported Reuters on Nov. 14.

Morgan Stanley’s Asia private equity arm wants to buy about 80% of HCP, said one of the sources. The deal is valued at about US$500 million, the four sources indicated.

To help fund the transaction, lenders are being sought for a $260-million loan, and UBS AG is advising, said the sources, who declined to be identified due to the private nature of the deal.

HCP, Morgan Stanley and UBS would not comment on the matter, according to the article, which was posted on PEhub.com.

HCP has most of its operations in mainland China. With annual sales of about $130 million, the privately-owned company produces luxury packaging for L’Oreal SA of France and Tokyo-based Shiseido Co. Ltd., which make cosmetics hair care or skin care products.

Morgan Stanley Private Equity Asia aims to raise about $1.5 billion for a new pan-Asia fund. The New York-based company recently gained control of Korean restaurant franchiser Nolboo, in a deal estimated at $108 million by local media, Reuters reported

The primary source of this article is Reuters, London, England, on Nov. 14, 2011.

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