Ardian's ADA Cosmetics bolts on Primary-backed Pacific Direct

The transaction is in line with ADA's acquisitive growth strategy, with the cosmetics business also bolting on Danish competitor Scandinavian Amenities in April 2015. The latest bolt-on will expand the group's presence in Asia, the US and the Middle East.

Under Primary's tenure, Pacific Direct undertook an organic growth strategy and secured various partnerships with international hospitality trade shows.

Previous funding
Ardian acquired ADA in July 2014 as part of a management buyout. The deal marked Ardian's eighth investment from its Expansion Fund III, which closed in March last year on €450m, with the ability to take on up to €50m in co-investments.

Primary acquired Pacific Direct for £20m from its founder Lara Morgan in 2008.

Company
Founded in 1991, Bedford-headquartered Pacific Direct is a cosmetics company serving hotels, cruise liners and airlines. It has a headcount of 230 and operations in eight countries, including manufacturing facilities in eastern Europe.

The company's clients include the Ritz Carlton, Crowne Plaza and Jumeirah Group, in addition to independent four- and five-star hotels.

Pacific Direct generated a turnover of €35m in 2014, with the vast majority of its sales generated in the UK, Middle East and US markets. Following the merger with ADA, the consolidated business will have revenues of €100m.

People
Dirk Wittneben is managing director of Ardian's German expansion team. Alec Parkinson, a partner at Primary Capital, oversaw the investment in Pacific Direct. George Allan is CEO of Pacific Direct. Wilhelm Könning is managing director of ADA.

Advisers
Equity – Lincoln International (M&A, debt advisory).
Vendor – Altium, Sascha Pfeiffer, Christopher Jones (Corporate finance).

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• Topics
• Exits
• DACH
• Consumer
• Expansion
• Germany
• United Kingdom
• Ardian (formerly Axa PE)
• Primary Capital