Bioplan and Arcade Marketing, two leading suppliers of sampling solutions for the beauty, fragrance and personal care segments, will combine their respective businesses into a new strategic venture, under which Oaktree, the owner Ileos, Bioplan’s parent company, would retain a 75% ownership interest and KKR and DLJ Merchant Banking, the owners of Arcade, would retain a 25% ownership interest.
According to the release issued by the two companies, the proposed combination is based on the complementary aspects of their businesses. “The new venture’s global sales and manufacturing platform will be uniquely positioned to service its customers with an enhanced products and services portfolio,” they said.
Bioplan will enrich its product portfolio with patented solutions notably using micro encapsulation and other proprietary flat sample technologies. Similarly, Arcade Marketing will also complement its offerings by benefiting from Bioplan’s production capabilities, including vials and sachets. Furthermore, the combined entity will be able to rely on a pooling of research, development and manufacturing capabilities fostering continued innovation in sampling solutions.
The new venture is expected to generate turnover of approximately $450 million on a combined basis.
The parties anticipate entering into a definitive transaction agreement once the works’ council consultation process in France is completed. The transaction will be subject to normal and customary closing conditions and regulatory review and is expected to close by the beginning of the fourth quarter of 2014.