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Douglas sold to CVC Capital for $3.1 billion

German perfume and cosmetics retailer Douglas on Monday said it has signed an agreement to sell the company to CVC Capital Partners, cancelling earlier plans for an initial public offering.

Douglas, currently owned by private-equity firm Advent International and the Kreke family, is being bought by a holding company jointly owned by CVC and the family, who will maintain a 15% stake.

Financial details of the deal are confidential, but people familiar with the matter have said the transaction values Douglas at roughly €2.8 billion ($3.1 billion). Advent had initially sought a valuation of between €3 billion and €3.5 billion for Douglas, according to executives and people familiar with the matter.

Advent initially sought a valuation of between €3 billion and €3.5 billion for Douglas, according to executives and people familiar with the matter, well above the apparent current valuation.

Advent and the founding family of Douglas took the retailer private in 2012 for roughly €1.5 billion. They subsequently sold ancillary operations, including jewelry retailer Christ. Douglas last year bought French perfume retailer Nocibé, boosting the number of perfume and cosmetic outlets in its network to roughly 1,700.

Financial investor KKR & Co. and French Luxury goods giant LVMH have also weighed buying Douglas, people familiar with the matter said earlier.

Douglas said last week that it expected earnings before interest, taxes, depreciation and amortization, or Ebitda, of €274 million for the fiscal year ending September 30.

CVC Managing Director Søren Vestergaard-Poulsen said the group plans to expand Douglas with more acquisitions outside of Europe.

Douglas Parfumerie

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