Baring Private Equity Asia Exits Stake Of Magic Holdings

Baring Private Equity Asia is exiting its investment in Magic Holdings International by selling the firm to Paris-based L’Oréal SA for about US$845 million, according to a joint company announcement.

L’Oréal is to acquire all of the shares of Hong Kong-listed Magic Holdings International for 6.30 Hong Kong dollars per share.

Baring Private Equity currently holds a 20% stake in Magic Holdings. It first acquired 15% of the company in 2012.

Baring and five other key shareholders, together holding 62% of Magic Holdings’ shares, are backing the deal. The transaction is still pending approval by the Ministry of Commerce of the People’s Republic of China (MOFCOM).

Magic Holdings’ MG brand is one of China’s top brands in facial masks, one of Chinese beauty market’s fastest growing segment. Magic Holdings’ turnover in 2012 was approximately €150 million ($200 million).

Baring advises funds with total committed capital of over US$5 billion. The firm specializes in mid-market companies requiring capital for expansion, recapitalization or acquisitions.