MANILA, Philippines - Aureos Southeast Asia Fund LLC, a specialist emerging markets private equity firm with over 270 investments in more than 50 countries, has acquired a 35-percent stake in personal care retailer HBC Inc.
Danny Lizares, investment principal in Aureos’ Philippine Office, said they invested $7 million in HBC, owned by Dra. Rosalinda A. Hortaleza of the Splash Group of Companies.
HBC, a world-class retailer of health, beauty, personal and home care products and services with over 200 stores nationwide, was founded in 1993 as Hortaleza Beauty Center and changed its name to HBC Inc. in 1995.
Lizares said Aureos specializes in helping small and medium-sized businesses scale up their operations locally and regionally.
He said the personal care market remains one of the fastest growing markets in the Philippines today with leading players aggressively expanding their consumer bases by offering a varied supply of products.
HBC, which accounts for less than five percent of the P35 billion personal care industry, used proceeds from the sale to fund the purchase of Savemore chain of drugstores, which currently stands at 53.
HBC earlier said it was eyeing record revenues of P1.7 billion with the opening of up to 30 new stores this year, located mostly in the provinces.
In the first half of 2011, sales and total revenues of HBC amounted to $16.47 million and $15.9 million, respectively.
To further boost sales, the company will set up kiosks in malls, which will sell core brands.