Douglas aims for €1.1B public listing to help reduce leverage in high rate environment

06 Mar 2024 --- This month could see German multinational perfumery and cosmetics chain Douglas go public as it tries to raise €1.1 billion (US$1.2 billion) when it lists on the Frankfurt Stock Exchange. 

Daniel Pindur, managing partner of CVC in the DACH region of Germany, Austria and Switzerland, tells Personal Care Insights:

“Douglas Group has embarked on a successful growth path and is now ready to take the next step as a publicly listed company. We are very proud to have partnered with the Kreke family and to have backed the company over the recent years. We will remain a major shareholder as we see further growth potential for the Douglas Group in the European premium beauty market.”

CEO Sander van der Laan also said, via a statement, that the company’s omnichannel business model will help it cater to customers in the stores and e-commerce:

“We have successfully set the course for long-term future growth with our strategy ‘Let it Bloom – DOUGLAS 2026’...our customers are attracted to our comprehensive beauty offering and value our broad and distinctive range of brands,” he says.

Douglas wants to reduce its leverage as it shells out about €300 million (US$326 million) per year in interest payments.

The beauty company was delisted from the Frankfurt Stock Exchange in 2013 after a joint takeover by investor Advent and the Kreke family. Private equity group CVC became the majority owner after buying out Advent in 2015 for about three billion euros.

Based in Düsseldorf, Douglas has approximately 18,000 workers and boasts 57 million members in its loyalty program.

More beauty IPOs?
Europe’s personal care and beauty industry could see more IPOs from companies such as premium Italian shoe brand Golden Goose (Permira) and EQT’s Galderma dermatology company. Still, the European market has been unable to keep pace with its American counterpart. 

According to EY’s Global IPO Trends 2023 report, total IPO proceeds from the Europe, Middle East, India and Africa region dropped 39% from the previous year, while the Americas region saw a 155% surge in total IPO proceeds in 2023 with about 132 deals taking place on US exchanges.

That prompted many companies, especially European ones, to consider listing in the US, including German chemicals company Linde, which delisted in Frankfurt last year and is now solely on the New York Stock Exchange.

The Douglas listing in Frankfurt would be the biggest for the exchange since Schott Pharma last September. 

By Anita Sharma