Majority stake acquisition backs Geka’s emerging market push

28-Feb-2012 - Last updated on 29-Feb-2012 at 12:08 GMT

An international private equity firm has purchased a majority stake in cosmetics packaging supplier Geka, providing the brush maker with the financial backing it needs to continue its international expansion.

3i and funds managed by Britain-based 3i agreed to acquire the stake from business investor Halder for approximately €120m according to financial publication, City AM.

Founded in 1925, Geka currently has offices in Europe and the US, but with this investment it will look to expand in South America and Asia.

Asia and South America

"We are excited about the pro-active partnership with 3i and are ready to step up our growth. Our level of innovation remains a key unique selling proposition,” says Franco Lucá, CEO of Geka.

“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."

Headquartered in Bechhofen, Germany, Geka currently serves both the mass market and premium segment for packaging in the cosmetic industry. In addition, it distributes cosmetics products via its subsidiary Victoria.

The packaging manufacturer employs around 650 staff globally and generated revenues of approximately €100m in 2011.

Emerging markets

The future growth of the company is planned to come from the international expansion, particularly in China and Brazil. This will ensure close proximity to global customers and distribution partners in high growth emerging markets, according to Geka.

"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,” explains Ulf von Haacke, partner and managing director of 3i Germany.

“We are convinced that we can support the company’s expansion and development by providing it access to growth capital and 3i's international network."

Geka specialises in plastic injection moulding for mascara brushes and mascara packaging as well as being a development partner of market leading international cosmetics groups including Procter & Gamble, Avon and LVMH.

The company runs production facilities in Bechhofen, Germany and in Elgin, Illinois, USA with an additional sales office in France.