- Kreke family reinvests in Douglas AG, Henning Kreke to continue as CEO of the company
- Growth potential in highly attractive Selective Beauty Market in Europe
- CVC with significant experience in the sector having previously invested in Matas
CVC Capital Partners ("CVC") announced today that funds advised by CVC have signed an agreement to acquire Douglas AG ("Douglas") from a holding jointly held by Advent International ("Advent") and the Kreke family. The purchase price was not disclosed. The Kreke family has furthermore agreed with CVC to reinvest in Douglas AG through a joint holding company owned by CVC and the Kreke family. Dr Henning Kreke will continue to serve as CEO of Douglas.
Dr Henning Kreke, CEO of Douglas and a representative of the Kreke family, 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 E-Commerce presence. 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, commented: "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."
Headquartered in Germany, Douglas is Europe's leading specialist retailer of beauty and personal care products with pro forma annual sales of about EUR 2.5 billion in fiscal year 2013/2014. The company was founded in Hamburg in 1821. It has grown into today's market leader under the management of the Kreke family since 1969. Douglas owns more than 1,700 stores in 19 countries across Europe with market leading positions in eleven countries.
The acquisition of Douglas does not include the book retailer Thalia and the fashion retailer AppelrathCüpper, which are held by separate holding companies under the ownership of Advent and the Kreke family.
Douglas is the second investment by CVC in the Selective Beauty Retail market, following the highly successful investment in Matas, Denmark’s leading health and beauty chain. CVC acquired a majority stake in Matas in 2007 and Søren Vestergaard-Poulsen served as the chairman of the board of Matas Group until the successful IPO on the Nasdaq OMX Copenhagen in 2013. CVC gradually sold its stake and today is no longer invested in Matas.
The transaction is subject to regulatory approval.
The parties involved in this transaction would like to invite journalists to participate in a conference call, which will take place today at 4.00 pm CET. The dial-in number is +49 69 271340175.