Exit strategy from Chapter 11
Following the filing of voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code by its parent company, Specialty Packaging Holdings (SPH), Cosmolab is about to be sold to All4 Cosmetics, a subsidiary of Schwan-STABILO Cosmetics, of Nuremburg, Germany.
“SPH and its subsidiaries [1] will continue to conduct business as usual during the Chapter 11 proceedings while they undertake to sell their assets,” the company said in a release.
The group has already announced the sale of the jars and closures assets of its plastic injection moulding subsidiary, Cosmetic Specialties, to private equity firm Asparron Capital to create Cosmetic Specialties International.
Operations maintained at historic location
As far as Cosmolab is concerned, SPH announced that all of the operating assets to All4 Cosmetics, a subsidiary of Schwan-STABILO Cosmetics. “All4 Cosmetics is prepared to continue business operations in Lewisburg [Tennessee], continuing Cosmolab’s long history as a leader in the manufacture of colour cosmetics and cosmetic pencils,” the company added.
According to Michael Musso, Chief Restructuring Officer for SPH, “Schwan-STABILO is one of the most respected companies in the industry. We believe this acquisition will strengthen both companies and provide their customers with the highest quality and most innovative products available. We are also very happy that All4 intends to maintain the operations in Lewisburg, Tennessee, continuing to serve our valued customers without interruption.”
SPH need to get Court approval of a process to market these assets, and All4 Cosmetics’ offer is subject to competitive bidding by third parties during the Chapter 11 auction process.
