Ileos, owned by funds managed by Oaktree Capital Management, and Visant Corporation, controlled by affiliates of KKR and DLJ Merchant Banking, are bringing together their subsidiaries, Bioplan and Arcade Marketing, in a strategic venture for sampling solutions for the beauty, personal care and fragrance segments.
Under the agreement, Oaktree will retain a 75% ownership interest and KKR/DLJMBP will retain 25%. Ileos said the partnership with Arcade Marketing is in line with its growth strategy to find “product and geographic complements to its businesses”. It added that the venture will allow Bioplan to “enrich its product portfolio with patented solutions notably using micro encapsulation and other proprietary flat sample technologies”.
The new venture is expected to generate turnover of approximately US$450m on a combined basis. The transaction is subject to the usual conditions and regulatory reviews and is expected to close by the beginning of the fourth quarter of 2014.