Douglas was planning a stock market listing to help further international expansion; however, US buyout firm Advent International received an updated offer from CVC at the weekend, and said it had decided that this investment was the best option for the company.
As well as negotiating the deal with Advent International, approval was also granted by the founding Kreke family, who originally said they wante to ‘remain engaged’ in the company and have now stated their intention to reinvest in the firm through a joint venture with CVC.
"Over the past two years, Douglas has become the largest specialist beauty retailer in Europe. It is renowned for its clear customer focus, an innovative product portfolio and an impressive in-store and E-Commerce presence,” says Dr Henning Kreke, CEO of Douglas and a representative of the Kreke family.
“We look forward to partnering with CVC as a reliable and strong, long-term partner who will support the company with additional industry expertise and financial resources, to ensure our continued growth."
CVC adds that it is delighted to come to an agreement for the purchase of Douglas as it is a market leader with attractive growth prospects due to its strong management team, extensive store network, leading online presence and dedicated employees.
“We are very much looking forward to working with the family and the management to grow this European Beauty champion further over the long term," says Søren Vestergaard-Poulsen, Managing Partner at CVC.
Douglas is the second investment by CVC in the Selective Beauty Retail market, following the highly successful investment in Matas, Denmark's leading health and beauty chain.
Douglas is currently Europe’s biggest perfume chain with more than 1,700 retail outlets in 19 countries, and controls about 17% of that market, according to its figures. The company also had revenue of about €2.5 billion in its 2013-2014 fiscal year.