Quadriga postpones LR Health & Beauty IPO

Buyout firm Quadriga Capital has no firm timeline for the listing of its portfolio company, the sources said. The deal was originally scheduled for 4Q21, according to a previous newswire report.

A source close to the company said LR is “IPO ready” but the market’s receptiveness has been impacted by volatility driven by expected interest rate rises and ongoing geopolitical tensions.

Continued volatility and tensions due to Russia’s invasion of Ukraine mean an IPO timeline cannot be pinned down, the source added.

The direct sales business would still like to list on the Frankfurt Stock Exchange and pursue a bigger private placement aimed at US investors and pension funds, a second source added.

Unquote's sister publication Mergermarket first reported in July 2021 that Quadriga had appointed Macquarie for an exit process, with the company being marketed on around EUR 42m EBITDA. Previous reports said the company could be valued at more than EUR 500m in a potential IPO.

LR is a Germany-based direct sales company focused on skincare, cosmetics and nutritional supplements. Founded in 1985, it generated adjusted EBITDA of EUR 42.5m on sales of EUR 285m euros in 2020, according to a previous report. In the first quarter of 2021, sales rose by 15%, while core earnings jumped 40%, the same report added.

Quadriga acquired LR Health & Beauty from Apax Partners in 2013 for an estimated EUR 250m, according to Mergermarket data. It then bought out fellow sponsor Bregal in 2018.

Quadriga Capital and LR Health & Beauty declined to comment.

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• Topics
• Exits
• Consumer
• DACH
• Macquarie Group
• IPO
• Quadriga Capital