Carlyle Group Inc. is set to buy Chinese packaging firm HCP for about $1 billion, people familiar with the matter said, less than two months after a sale of the business was threatened by valuation concerns.

The US-based buyout firm hammered out final details of an agreement with HCP’s owner Baring Private Equity Asia this week, the people said, asking not to be identified discussing confidential information.

Carlyle expects to win regulatory approvals and complete the transaction over the coming months, the people said. Representatives for BPEA and Carlyle declined to comment.

Founded in 1960, HCP designs, develops and makes packaging containers for the cosmetics and toiletries industries. It has about 10 manufacturing locations in Asia, North America and Europe, and serves more than 250 customer brands, according to its website.

BPEA looked set to shelve a sale of HCP in March over concerns over valuation, Bloomberg News reported at the time. It had been seeking about $1.5 billion for the business, which had drawn interest from private equity firms including Primavera Capital, PAG and DCP Capital. An earlier attempt to sell HCP was halted in 2020 amid the Covid-19 outbreak, they said.

BPEA bought HCP from rival buyout firm TPG Capital in 2016 for an undisclosed amount. HCP has expanded in part by acquiring SIMP the same year, Germany’s Rusi Cosmetic the following year and Hetian Packaging Co. in 2020.

Swedish investment firm EQT AB agreed to acquire BPEA in a $7.5 billion cash and stock deal in March. The transaction is the biggest takeover of a private equity firm by another in the sector.