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CVC considering a sale or IPO to exit Douglas: Reuters
Posted on Thursday, 13 February 2020 13:05
CVC Capital Partners is reportedly exploring strategic options for Douglas as the private equity firm looks to exit the German perfume retailer it bought for EUR 2.80 billion five years ago.
Reuters cited people familiar with the matter as saying the buyout group has hired Goldman Sachs to work on a possible initial public offering (IPO) or a sale of the business.
Douglas, which claims to be one of the leading retailers of beauty products in Europe, told the news provider the decision was up to the owner, while CVC and the investment bank both declined to comment.
The sources cautioned no final decision has been made and therefore there is no guarantee of any deal taking place.
However, if a stock market flotation is the chosen option, it is unlikely to happen before the second half of 2020, the insiders noted.
The report by Reuters comes two months after Douglas’ chief executive Tina Mueller told the news provider the company is looking to further expand, and an IPO could be in the near future.
She said the foundation has been laid but cautioned the ultimate decision is up to CVC.
The private equity firm paid EUR 2.80 billion alongside the Kreke family to pick up the business from Advent International in 2015.
Douglas has operational stores and an online business, which retail cosmetics, fragrances, hair and skin care and accessories across a large range of brands from NYX to Bvlgari and Urban Decay.
The company recorded a 5.4 per cent increase in sales to EUR 3.50 billion in the year ended 30th September 2019.
During the same 12-month period, Douglas posted a 40.1 per cent rise in earnings before interest, taxes, depreciation and amortisation to EUR 283.00 million.
Zephyr, the M&A database published by Bureau van Dijk, shows there were seven IPOs of toilet preparation manufacturers announced worldwide in 2019.
All of these companies were based in Asia Pacific, including Nanjing COSMOS Chemical and Shinnihon Seiyaku.
The industry was targeted in a total 308 deals announced globally last year, according to Zephyr, with the biggest of these involving Natura & Co Holding picking up Avon Products for USD 4.23 billion.
© Zephus Ltd