LVMH-backed L Catterton buys Kiko Milano from Italy’s Percassi group

29 Apr 2024 --- LVMH-backed investment firm L Catterton acquires a majority stake in the Italian beauty brand Kiko Milano from the founding Percassi Family, who will retain a “significant” stake in the company. Terms of the transaction have not been disclosed.

Founded in Bergamo, Italy, in 1997 by Antonio and Stefano Percassi, Kiko is among the world’s largest privately owned color cosmetics brands. The brand oversees a retail network of more than 1,100 stores in 66 countries and an efficient e-commerce platform.

Last year, Kiko recorded net revenue of approximately €800 million (US$857.2 million) and nearly 20% year-over-year growth.

“We founded a brand that has evolved into an international hallmark, cherished by clients across generations and experiencing exponential growth,” comments Antonio Percassi, who will retain the position of president of the company.

“We are very pleased to partner with L Catterton, whom we believe will accelerate Kiko’s global expansion, leveraging their extensive expertise in the cosmetics sector and a global network of commercial opportunities and talent.”

The Percassi group, which is active in retail real estate, runs Italian commercial operations for Starbucks, Nike, Gucci and Victoria’s Secret.

Scaling global beauty investment
Last March, Reliance Retail was reportedly in talks to acquire Kiko Milano for Rs 100 crore (US$12 million). There was speculation that this play by India’s largest retail company would solidify the firm’s stake in its rapidly expanding home beauty market.

“Kiko’s unrivaled scale, first-to-market advantage and ability to provide unmatched product offerings at accessible prices uniquely positions the company for global success,” says Arabella Caporello, a partner in L Catterton’s Europe Fund. 

“We have significant experience scaling leading brands in Europe, and we look forward to working alongside CEO Simone Dominici and his team to capture the company’s incredible potential.”

In 2023, Kiko recorded net revenue of approximately €800 million (US$857.2 million).L Catterton previously invested in over 30 global beauty brands, including contract cosmetic manufacturer Intercos, UK skin care brand Elemis, Japanese skin care label Etvos, vegan hair care brand Maria Nilla and beauty consumer tech platform Oddity.

PriceWaterhouseCoopers and Bonelli Erede assisted L Catterton in legal counsel.

Percassi Family was assisted by BofA Securities, Intesa Sanpaolo (IMI Corporate & Investment Banking division), BNP Paribas, Gatti Pavesi Bianchi Ludovici law firm and Deloitte.

“Innovative products’ quality, accessibility, personalized consultancy and captivating packaging design stand as the brand’s distinctive elements. I am confident that this collaborative partnership with L Catterton will help us bring Kiko to new heights,” says Dominici, Kiko’s CEO. 

“With their depth of experience investing in the beauty category across markets, they will be able to offer valuable insights to help us further scale our brand by pursuing an omnichannel strategy and establishing new and relevant geographical footprints, such as the US, also aided by the support of John Demsey.”

By Benjamin Ferrer