Perfume retailer Douglas completes IPO, raising $1.5bn

German perfume retailer Douglas AG has priced its initial public offering (IPO) at €26 per share, the bottom of the marketed range, raising a total of €889 million ($1.5 billion). The offering values the company at approximately €2.8 billion ($4.6 billion).

Transaction snapshot

  • Deal value: €889 million ($1.5 billion)
  • Deal multiples: N/A
  • Deal type: Initial Public Offering (IPO)
  • Current investors: CVC Capital Partners and the founding Kreke family to remain invested

The CVC Capital Partners-backed company sold about 32.7 million new shares, raising around €850 million, while current stockholders sold approximately 1.5 million existing shares. Additionally, Douglas will receive €300 million through an equity injection from existing shareholders. CVC and the founding Kreke family will maintain their investment in Douglas following the listing.

The IPO comes as listings gain momentum after two slow years due to rising interest rates. Other retail companies looking to go public include Galderma Group AG, a skin-care business aiming to raise about $2.3 billion in Switzerland, and luxury Italian shoemaker Golden Goose and German fashion retail club Best Secret, both owned by buyout firm Permira.

CVC acquired Douglas, which has roots dating back to 1821, in 2015 for approximately €2.8 billion. The well-known chain on European shopping streets has been expanding its network to more than 1,800 stores in 22 countries and growing its Ecommerce offerings across Europe.

Douglas is positioning itself as an investment opportunity for European fund managers seeking a pure-play investment in higher-end beauty products. Its main competitor, Sephora, is owned by French luxury giant LVMH, which also owns brands such as Hennessy cognac and Dior fashion.

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