The deal, subject to the usual regulatory approvals, is likely to close before the end of 2019 and will see Aptar Group acquire a 49% stake in 3 packaging companies: Suzhou Hsing Kwang, Suqian Hsing Kwang, and Suzhou BTY (known collectively as BTY). The deal also allows for Aptar to eventually invest further in the BTY companies.
As Stephan Tanda, Aptar president and CEO, tells the press, “This transaction meets our disciplined investment approach of acquiring leading, recognized players with innovative technologies and know-how, and includes an option to raise our stake in future years. We look forward to welcoming BTY to the Aptar family.”
The BTY companies will bring capabilities such as “high speed stamping and anodization, metal and plastic decoration and differentiated lipstick masstige mechanism design and manufacturing,” to Aptar as the Group’s press release on the deal highlights.
And according to Liang Cheng, founder of the BTY companies, Aptar and BTY both strive to deliver innovative packaging solutions. “Together,” he says, “we will be able to provide customers with further agility, speed to market and an enhanced portfolio of products and services, all while contributing positively to people’s lives, our society and ultimately the planet.”
Summarizing the value of the deal, the press release states, “This investment positions Aptar well to capitalize on growth potential in the Asian color cosmetics market, while further strengthening Aptar’s ability to serve customers focused on the color cosmetics markets.”
Importantly, the BTY facilities (which employ some 900 people) are all near the existing Aptar manufacturing site in the Suzhou, Jiangsu Province in China. And cosmetic manufacturers in the same area make product for global distribution.
While the BTY deal will expand Aptar’s color cosmetics packaging business globally, the company’s first objective will be to serve more makeup manufacturers in Asia.
“We are committed to growing our business in Asia and to creating an even stronger local presence in this region,” affirms Tanda in Aptar’s press release about the deal. “This strategic equity investment better positions us in the high-growth Asian color cosmetics market and we look forward to leveraging our expansive portfolio of dispensing technologies, along with our global scale, to build upon BTY’s success in this market.”
Xiangwei Gong, who leads the company’s business in the region as president of Aptar Asia, also stresses the local and regional potential this deal adds to Aptar’s business in Asia saying, “We have a strong focus to grow in Asia through strategic partnerships as well as acquisitions. This strategic equity interest in BTY is key to our strategy as it allows us to create even stronger local teams, co-create local innovations and leverage the strength of Aptar’s global capabilities for our Asian customers in the color cosmetics market.”
Deanna Utroske, CosmeticsDesign.com Editor, covers beauty business news in the Americas region and publishes the weekly Indie Beauty Profile column, showcasing the inspiring work of entrepreneurs and innovative brands.