Chinese cosmetics firm acquires Tommee Tippee

Jahwa agrees deal worth 135 million pounds for UK's best-selling nursing bottle maker

Chinese cosmetics maker Shanghai Jahwa (Group) Co Ltd has reached an agreement to acquire Mayborn Group, the parent company of the largest British nursing bottles producer, Tommee Tippee.

Jahwa, wholly owned by Ping An Insurance (Group) Co, is acquiring the company from British private equity firm 3i Group Plc, the group says. The proceeds to 3i from the transaction will be 135 million pounds ($199 million; 171.8 million euros).

The purchase is the first overseas acquisition by Jahwa. It is also the company's first purchase of a non-cosmetics brand. Jahwa owns many well-known Chinese makeup brands, including Herborist and Maxam.

"Following China's new policy that encourages married couples to have two children as opposed to one in the past, we are bullish on the long-term growth of the baby products sector in the Chinese market," Jahwa said in a statement.

"Mayborn enjoys a great reputation and regard among its peers, given its stable sales performance and strong R&D capabilities. The acquisition is a combination of strengths. The two sides will be able to create an international business platform of baby care products."

Mayborn, a leading high-end maternal and baby products producer, was taken private by 3i in 2006. After the acquisition, Mayborn started to make further investments globally, says Alan Giddins, managing partner of 3i Group.

Tommee Tippee takes the top market share in terms of sales revenues in the United Kingdom, and the fifth-largest market share globally. After it entered the United States, Mayborn became the fastest-growing infant feeding bottle brand in the US market.

Jahwa's move is part of an ongoing trend by Chinese companies acquiring premium foreign consumer brands, expanding their businesses overseas and bringing high-quality foreign products to China.

"A critical way for China to raise its competence and upgrade its industrial structure is through acquiring premier overseas brands," says Lu Jinyong, a professor at the University of International Business and Economics in Beijing.

Last month, leading Chinese textile company Yong Sheng, a Hangzhou-based, privately owned enterprise, acquired French lace producer Desseilles Laces SAS, one of the oldest lace producers in the country, for 300,000 euros ($341,000).

Contact the writers through zhuwenqian@chinadaily.com.cn