Hong Kong - Monday, 11 May 2015
ARIA Investment Partners IV, LP and ARIA Investment Partners IV (Non-US), LP (together, “ARIA IV”) are pleased to announce the investment of RMB 150 [US$ 24.5] million in Coco Healthcare Products Co., Ltd. (“Coco”). ARIA IV Funds are private equity funds managed and advised by CLSA Capital Partners, which is the asset management arm of CLSA, Asia’s leading independent brokerage and investment group.
Based in Hangzhou, Coco is one of China’s fastest growing companies in the consumer goods sector targeting the country’s rapidly aging population. Coco is a market leader for adult diapers in both traditional retail and online e-commerce sales. Driven by powerful social and demographic forces and home to the world’s largest aging population, China’s adult incontinence market is projected to grow 15-20% CAGR over the next five years.
“Coco” brand products are distributed nationwide across China, based on the combined notion of “comfortable and considerate”. Coco is also China’s largest exporter of baby diapers, providing dedicated private label and Original Design and Equipment Manufacturing solutions to major regional and international customers. ARIA IV is Coco’s first private equity investor.
Managing Director of the ARIA Funds, Miranda Tang, commented, “This is the first investment by ARIA IV in China and continues more than a decade of successful investing by ARIA Funds in leading consumer businesses in China and the region. Rapid urbanisation, better education and improved healthcare coupled with low diaper penetration have enabled adult incontinence products to become one of the fastest growing categories in the FMCG segment in China. The recent landmark changes in China’s decades-long one-child policy will drive growth in baby diaper products. The ARIA team aims to assist Coco in expanding its footprint in Asia, enhancing its brand and helping it to capture the exponential growth potential in this space. It gives us great pleasure to invest in Coco.”
Owner of Coco, Jin Liwei said, “We are delighted to receive the investment from ARIA IV. The ARIA Funds are one of the region’s most experienced private equity funds with many successes in backing companies in China and across Asia. CLSA Capital Partners brings immense value from their deep insights in the Chinese consumer market and regional network of pan-Asian contacts. ARIA IV’s investment in Coco is recognition of the progress made by the Company to emerge as the market leader in the adult diapers category.”