CVC Capital Partners acquisition of Douglas

Overview:

• CVC Capital Partners has acquired a controlling stake in German perfume and cosmetics retailer, Douglas, from the company's joint owners Advent International and the Kreke family. 
• Douglas was purchased by a holding company owned by CVC and the Krekes, who founded the business and have reinvested in it to secure a 15% stake.  
• The fee for Douglas was not disclosed but news reports citing sources close to the deal say it valued the business at around €2.8 billion. 
• CVC raised €1.855 billion to finance the deal through two bond issues of €300 million senior secured notes and €335 million senior notes, and a €1.22 billion senior facilities agreement.
• Before the sale was agreed, Advent had been planning to take Douglas public again.
• When Advent bought its stake in Douglas for €1.5 billion in 2012 the company was listed on the Frankfurt Stock Exchange.
• Following the sale, Douglas was taken private and its non-core businesses, including a chain of jewelry stores, were divested so it was focussed on perfume and cosmetics.
• Two days prior to the announcement of CVC's acquisition, Douglas was planning to IPO Advent's portion of the company and an additional €70 million in shares. 

Ben Naylor - Regional editor