Private equity group CVC Capital Partners has acquired perfume and cosmetics retailer Douglas from Advent International.
- CVC Capital buys out Advent International to secure control of Douglas
- The Kreke family will retain a minority stake of 15% and Dr Henning Kreke will remain as chief executive
- Douglas was nearing an IPO but decided investment was the best option for future growth
The German retailer was jointly held by Advent International and the Kreke family, but CVC Capital Partners has now bought out Advent for an undisclosed sum.
Dr Henning Kreke will remain as chief executive officer at Douglas. He said: “Over the past two years, Douglas has become the largest specialist beauty retailer in Europe. It is renowned for its clear customer focus, an innovative product portfolio and an impressive in-store and ecommerce presence.”
Douglas, which has more than 1,700 stores across Europe, last week had announced plans to float but following an updated offer from CVC it decided investment was the right way to secure future growth and further international expansion.
Kreke told Reuters: “An IPO would have been an interesting option but only the second-best for the company.”
The founding family will keep hold of a minority stake in the business of 15%.
Kreke continued: “We thank our employees for their continuous commitment and Advent International for the valuable support in aligning our business and positioning it for further growth. We look forward to partnering with CVC as a reliable and strong, long-term partner who will support the company with additional industry expertise and financial resources, to ensure our continued growth.”
Søren Vestergaard-Poulsen, managing partner at CVC, added: “We are delighted to have come to an agreement to acquire Douglas together with the Kreke family. Douglas is a market leader with attractive growth prospects due to its strong management team, extensive store network, leading online presence and dedicated employees. We are very much looking forward to working with the family and the management to grow this European beauty champion further over the long term.”