Canada’s Ontario Teachers’ Pension Plan (OTPP) is said to be close to buying a stake in Hong Kong-based packaging firm GPA Global from Swedish private equity firm EQT, per a Bloomberg report.
Even as there are multiple bidders for the packaging business including Asian private equity firm FountainVest Partners, the report added that OTPP stood out to be winning the deal.
The sale could reportedly value GPA at about $700-800 million.
DealStreetAsia has reached out to OTPP and EQT for comment.
EQT, through its EQT Mid Market Asia III, acquired a co-control stake in GPA in 2017, and is currently the single largest shareholder of the company, according to information on EQT’s website.
GPA has recorded “strong sales and EBITDA growth”, serving customers in the consumer electronics, mobile accessories and games and toys sectors, EQT said.
Founded in 2007 as Green Packaging Asia, GPA currently runs manufacturing sites across North America, Europe, and Asia.
Targeting a $2.7 billion global retail packaging market which is expected to grow at 13% annually, the company aims to strengthen its presence in the core manufacturing regions within China and across other major markets, as well as to expand into new customer verticals such as health and beauty, premium liquor and luxury brands, according to EQT.
The Swedish private equity group had 77 billion euros in assets under management as of June 30, 2022, across 36 active funds investing in Europe, Asia-Pacific and the Americas. In March, the firm announced a strategic combination of its Asia private equity business with Baring Private Equity Asia.
Meanwhile, OTPP has had over C$20 billion worth of investments across APAC markets. Its direct private equity investments include Australasian insurance distributor Greenstone, Singapore-based data centre operator Princeton Digital Group, Korean F&B chain BHC Group, Hong Kong- and Singapore-based gym chain Pure Group, Asia Pacific Healthcare Group, Abano Healthcare Group and Australian education provider Navitas, among others.