FRANCE. 3i, Europe’s leading private equity company, has signed an agreement to back the management of international fragrance and cosmetics licencee and distributor Selective Beauty, in a leveraged buyout.
The company’s founders, Corrado Brondi and Christophe Cervasel, alongside management, will retain 55% of the capital. 3i will acquire 45% of the capital, while Wisequity, Investitori Associati and Eurosmallcap will realise the whole of their investment.
The transaction, in which 3i is investing €50 million, will include senior debt of €25 million, underwritten by BNPP, Fortis and Banca Intesa, plus a mezzanine debt of €30 million underwritten by Euromezzanine. Credit lines have already been set up to provide financing for the company’s growth.
Selective Beauty was created in 2000 and describes itself as one of the leading independent players in the beauty sector. The company offers its customers a wide spectrum of services from distribution to fully licensed development of fragrances and cosmetics.
Its clients include Lanvin, Burberry, Lolita Lempicka, Bvlgari and Elizabeth Arden, Agent Provocateur, Benetton, Max Mara, Trussardi and Sonia Rykiel.
The company has nine distribution subsidiaries in the world’s main markets, and completes its global coverage with a network of third-party distributors. Selective Beauty employs 450 people; its turnover objective for this year is over €140 million.
The company has grown at a rate of +50% a year since its inception. Selective Beauty’s enterprise value is around €170 million.
3i’s sector approach and a longstanding relationship with the management paved the way for this successful transaction. 3i intends to support the company in its growth strategy, by offering the benefit of its experience in the distribution sector and its worldwide network.
Frédéric Jannin, a 3i Director said: “From the outset, Selective Beauty had the essence of a good deal. The company’s growth prospects are extremely attractive and 3i enthusiastically decided to support the plan to expand the company.
“The potential of the brands in Selective Beauty’s portfolio, combined with the talent of its teams, leaves us in no doubt about the company’s capacity to continue to take market share whilst improving its profitability.”
Selective Beauty Chairman Corrado Brondi added: “After six years of very strong growth – made possible by the trust of our initial financial partners – we now wish to begin the second stage of our Group’s development by drawing on 3i’s international strength.
“Our target in the future is to maximise the potential of our brands, develop our client partnerships, acquire new contracts for high potential brands and reinforce our structures.”
The transaction is subject to competition clearance.
MORE ABOUT 3i
3i describes itself as a world leader in private equity and venture capital. It focuses on buyouts, growth capital and venture capital, and invests across Europe, in the US and Asia. Its competitive advantage comes from its international network and the strength and breadth of its relationships in business. The 3i group invested €1.6 billion during the fiscal year closed to 31 March 2006: €674 million in buyouts, €713 million in growth capital and €224 million in venture capital.
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Max Mara and Selective Beauty sign worldwide licence agreement – 10/05/06
