Ardian buys ADA Cosmetics from Carlyle

The deal marks Ardian's eighth investment from Ardian Expansion Fund III, which closed in March this year on €450m with €50m in co-investments.

ADA's management team has taken a minority stake in the company as part of the transaction. They intend to grow the company across Europe, Asia and the Middle East and are considering establishing local production facilities in Asia to better serve the region. Last year, the company secured a contract with a Chinese hotel chain and generated 7% of its sales in the Asian hotel market.

The business also plans to follow a bolt-on acquisition strategy together with Ardian, as well as expand its product range and associated designs. New distribution channels will also be launched.

Previous funding
Carlyle acquired a majority stake in ADA in April 2011 in an SBO from Halder. Carlyle used its Carlyle Europe Technology Partners II vehicle to finance the deal, while the management team retained a minority stake. The capital was earmarked for ADA's international expansion.

According to unquote" data, Halder acquired ADA in an MBO from the founding family Dahlmeyer in November 2006. The GP used its Halder-Gimv fund to make the transaction, with a senior debt package provided by Investkreditbank.

Debt
Commerzbank and DZ Bank provided a moderate amount of debt for the deal, according to an Ardian source.

Company
Founded in 1979 in Kehl, ADA manufactures and sells personal care products including shampoo, body lotion and soap for the hotel industry. Its customer base is three to five star hotels and hotel chains, as well as airlines and cruise ships. The business supplies almost 15,000 customers in more than 50 countries, with the majority of sales generated in the DACH region, where it has a 35% market share, and France.

ADA has approximately 300 employees operating out of seven subsidiaries in Europe, Asia and the Middle East, as well as a global distribution network. ADA expects to generate €53m in turnover in 2014, up from €50m in 2013.

ADA's products are sold under its own brand names, while its range also includes cosmetic products from international cosmetic brands Chopard, Bulgari and Trussardi.

People
Wilhelm B Könning is CEO of ADA. Dirk Wittneben is managing director at Ardian. Marc Abadir and Florian Korp supported him on the deal.

Advisers
Equity – Roland Berger Strategy Consultants, Wolfram Schmitt, Sven Kleindienst (Commercial due diligence); Wilkie Farr & Gallagher, Mario Schmidt, Jan Wilms, Maximilian Schwab (Legal); Deloitte & Touche, Egon Sachsalber, Tanja Fehr (Financial due diligence); Taxess Steuerberater, Richard Schäfer, Gerald Thomas (Tax, corporate finance); Aon Risk Solutions, Hansjörg Pezzei, Christoph von Lehmann (Insurance due diligence); ERM, Christopher Kiermayr, Frauke Kadasch (Environmental due diligence); Lincoln International, Dominik Spanier, Christine Weis (Debt advisory); Blue Corporate Finance, Lars Veit (M&A).

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• Topics
• DACH
• Buyouts
• Industrials
• Germany
• Ardian (formerly Axa PE)
• Carlyle Group