In line with its local for local growth strategy in China, medmix has signed an investment agreement to acquire a majority stake in Guangdong Qiaoyi Plastic Co. LTD, a beauty manufacturing business in Shantou.
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. Qiaoyi, with approximately 350 employees, is a long-standing manufacturer of a wide range of products for the beauty market, with a strong Chinese customer base producing local cosmetic brands.
The current owners of Qiaoyi will retain a minority shareholding in the company and continue to operate the business. This will allow medmix to leverage the entrepreneurial spirit and deep market expertise of Qiaoyi as well as access the established local customer relationships with its award-winning GEKA applicators for local beauty brands.
The transaction is expected to close in the first half of 2023.
Girts Cimermans, CEO of medmix, said: “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.”
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.