Creative Outsourcing Solutions International (Cosi), which makes beauty products on a contract basis, recently cut its workforce after disappointing sales and the loss of a large US customer put the future of the company in question.
The company was fighting to remain above water and workers had expressed fears that even if the company survived all non-operational departments would be axed.
Over 500 jobs are now secure after leading European competitor Budelpack announced the purchase of Cosi's production plant in Maesteg, Wales.
However, uncertainty remains regarding the future of Cosi's smaller site in Littlehampton, West Sussex.
Powered by a new business plan Budelpack intends to reverse the fortunes of Cosi, which recorded an annual turnover of €105m in 2006.
After spending £9m (€12.8) expanding its site in Maesteg, which it obtained from Revlon in 2001, Cosi had aimed to double its turnover in three years.
Since then, sales figures have been well below expectations plunging the company into a cash flow crisis.
The business plan designed for Cosi is intended to turn the company around and equip it with a solid basis for profitable growth and increased market presence.
Budelpack spokesperson Nanneke Zelle told CosmeticsDesign.com that the acquisition would provide it with new strategic blue-chip partners and strengthen its position in the personal care market.
In addition, Zelle said the move would give Budelpack strategic UK-based personal care operations.
Netherlands-based Budelpack is a contract manufacturer and packer for the personal care and home care industries generating an annual turnover of €330m.