PARIS — Douglas Group said Monday that it plans a public listing on the regulated market of the Frankfurt Stock Exchange as early as March 2024, subject to capital market conditions.
The Düsseldorf, Germany-based beauty retailer targets an equity contribution of around 1.1 billion euros, including the targeted IPO primary proceeds and an added equity injection of around 300 million euros from the present shareholders, it said in an announcement.
Group shareholders include Kirk Beauty International SA, the holding company majority owned by funds advised by CVC Capital Partners and the Kreke family.
IPOs are heating up within the European beauty market, with Puig and reportedly Galderma mulling public offers.
“The proceeds are expected for use to proceed deleveraging the Douglas Group’s balance sheet,” the corporate said.
Douglas Group leveraged substantially after its business was hit by the coronavirus pandemic. At the top of the primary quarter, the group’s net financial debt was 3.06 billion euros.
“The remaining debt position is anticipated to be refinanced at higher terms in reference to the IPO,” the corporate continued. “The IPO would speed up the debt reduction and reduce the interest expenses of the corporate, thus enlarging the financial flexibility of the Douglas Group and its further value creation.”
Following the IPO, CVC Capital Partners will maintain an indirect majority interest in Douglas Group, and the Kreke family is to stay an indirect shareholder in it. Neither will sell any shares on the IPO.
“With our strong performing omnichannel business model we cater to customers in our stores and e-comm business and have successfully set the course for long-term future growth with our strategy ‘Let it Bloom – Douglas 2026,’” said Sander van der Laan, chief executive officer of Douglas Group, within the statement. “Our IPO is the logical next step for us to leverage our full potential in the long run as a publicly listed company.
“Driven by our highly motivated team, Douglas Group is ideally positioned to further capitalize on the big, resilient and growing European premium beauty market, where our customers are attracted by our comprehensive beauty offering and value our broad and distinctive range of brands,” he continued, referring to a market that is anticipated to extend by around 5.4 percent at a compound annual growth rate, or CAGR, to 24.2 billion euros by 2028.
“We’re very happy with the event of Douglas Group lately — the group has successfully transformed into the number-one omnichannel premium beauty destination in Europe,” added Henning Kreke, chairman of the supervisory board of Douglas Group, speaking of the retailer’s five largest European countries: Germany, France, Italy, the Netherlands and Poland, in keeping with OC&C evaluation.
“Our family sees itself as a passionate and committed shareholder, and appears forward to continuing to accompany the Douglas Group on its journey in the long run,” he said.
The corporate said it’s on target to achieve its mid-term goal to grow group net sales at a CAGR of around 7 percent and achieve an adjusted earnings before interest, taxes, depreciation and amortization margin of around 18.5 percent.
In the corporate’s first-quarter 2024, sales gained 8 percent in reported terms to 1.56 billion euros, while on a like-for-like basis, they advanced 7.5 percent. Omnichannel growth was robust, with net store sales and e-commerce sales rising 6.7 and 10.7 percent, respectively.
Within the period, Douglas Group’s net income grew 10.6 percent to 125.2 million euros.
