(Yicai) Jan. 8 -- Mao Geping Cosmetics is linking arms with US consumer goods investment firm L Catterton to boost its brands' presence in high-end international markets, the Chinese cosmetics company said yesterday.

The partnership is not about capital investment but is a strategic cooperation between the two firms, Yicai learned from an informed source. Specifically, L Catterton will leverage its global investment network and strategic partners to help Mao Geping Cosmetics’ brands grow in premium overseas markets. The two sides also plan to co-establish an equity investment fund focused on the international luxury beauty sector. In addition, they will link arms on optimizing capital structure, talent recruitment and corporate governance.

L Catterton has a long history of cooperation with Hangzhou-based Mao Geping Cosmetics, which was founded by well-known makeup artist Mao Geping in 2000, and previously invested in InterCos, Mao Geping Cosmetics’ largest supply chain partner.

L Catterton manages about USD39 billion across private equity, credit and real estate platforms. Its portfolio spans many segments of the beauty sector from skincare to fragrances. In recent years, the Connecticut-based firm has invested in Nordic bath and body skincare brand Stenders, Italian cosmetics company Kiko Milano, Hollywood actress Naomi Watts’ skincare brand Stripes Beauty, British skincare company Elemis and Japanese personal care firm Ci Flavors.

The day before the tie-up was announced, Mao Geping Cosmetics said that six core shareholders and executive directors, including the founder and controlling shareholder Mao Geping, plan to sell up to 17.2 million shares in the firm, or no more than 3.51 percent of the company’s issued shares, over the next six months.

The share sales are due to personal financial needs and the proceeds are mainly earmarked for investments in the beauty industry and personal expenses, the firm said. Based on today’s price of around HKD86 (USD11) per share, the executives will bag roughly HKD1.4 billion (USD179.7 million).

Mao Geping Cosmetics’ share price [HKG:1318] surged as much as 5.1 percent today to hit HKD92.50 (USD11.80) before closing down 1.4 percent at HKD86.65.

Editor: Kim Taylor