Private equity firm 3i has agreed to acquire a majority stake in Geka, a business which manufactures brushes, applicators and packaging systems for the cosmetics industry.
The undisclosed deal sees previous investor Halder exit its involvement in the German-based company. Halder, which focuses on management buy-outs in the German SME sector, initially held a stake in the company between 1999 and 2004, before taking it over with co-investor Idinvest in 2007.
Founded in 1925, Geka has reported revenues of €100 million (£85 million) for 2011 and currently employs 650 staff through its locations in the US, Germany and France.
According to a statement its future growth is set to come from international expansion into emerging markets such as China and Brazil.
Ulf von Haacke, partner and managing director at 3i Germany, comments, ‘Geka’s innovative strength and long-term partnerships with cosmetics manufacturers put the company in an excellent position to foster growth in its highly attractive and stable market segment.
‘We are convinced that we can support the company’s expansion and development by providing it with access to growth capital and 3i’s international network.’
CEO of Geka, France Luca, says that the business’ level of innovation is a key unique selling proposition.
He adds that alongside its plans to expand its operations in the Asian and South American markets, the company is also looking to enter the cosmeceutical (the combination of cosmetics and pharmaceuticals) market with the help of 3i.