Geka’s parent company Medmix has signed an investment agreement to acquire a majority stake in Guangdong Qiaoyi Plastic Co. Ltd, a manufacturer of packaging solution for the beauty industry based in Shantou.
“Local for local” strategy
"In line with our local for local growth strategy in China, this latest acquisition will strategically position Medmix as a player in the Chinese beauty sector, the fast growing second largest cosmetic products market in the world,” said the group in statement.
With approximately 350 employees, Qiaoyi is a long standing manufacturer with a strong Chinese customer base. The company produces a wide range of packaging solutions for beauty products, in particular for the lip gloss, lip balm, lipstick, mascara, eye shadow, and eyeliner categories.
“In the mid-term, our outstanding brushes and applicators, especially for mascara, will be added to Qiaoyi’s portfolio,” told Geka to Premium Beauty News.
The current owners of Qiaoyi will retain a minority shareholding in the company and continue to operate the business. According to Medmix, this will allow to leverage the entrepreneurial spirit and deep market expertise of Qiaoyi as well as to maintain a good access to Qiaoyi’s established local customer base.
The transaction is expected to close in the first half of 2023.
“We continue to execute on our strategic local for local growth plan in China. China is the second largest Beauty and Personal Care market worldwide, expected to grow strongly over the coming years. With the acquisition of Qiaoyi we will benefit from this market growth, expand our customer reach and improve our access to native Chinese brands for our wider range of products,” said Girts Cimermans, CEO of Medmix.
This announcement follows recent signings between Medmix and Valencia-based Universal de Suministros, S.L., as well as a long-term lease agreement for a new Medmix facility near Atlanta, Georgia, US, supporting all segments of the company’s Healthcare business area.