Three Hills purchases minority stake in Pelostop for €15m

As part of the deal, the investor syndicate acquired a 12% stake in the business from existing minority shareholders. Three Hills and Es Vedra provided a combined €15m equity-debt ticket, which included a €12.1m loan and €2.9m equity injection. Three Hills financed 80% of the total capital injection through its second vehicle, the 2015-vintage Three Hills Decalia, which held a final close on €200m in July 2016, while Es Vedra provided the remaining capital.

Following the transaction, Three Hills investment manager Lance Contento will join the company's board. According to a statement, the company aims to use the capital injection to operate a roll-out plan to expand its revenues.

Company
Founded in 2005 and based in Barcelona, Pelostop operates in 57 stores across the Spanish market focusing on hair removal laser therapy. The company employs a staff of 250 and expects to generate €21m in revenues with €5m EBITDA in 2017. Financial details on the present fiscal year have not been disclosed.

People
Three Hills Capital Partners – Mauro Moretti (founder, managing partner); Lance Contento (investment manager).
Pelostop – Francesc Casanovas (CEO).

Advisers
Equity – EY (financial due diligence, commercial due diligence); Cuatrecasas (legal).
Company – Montalbán Atlas Capital (corporate finance); Alentta Abogados (legal).

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• Topics
• Expansion
• Consumer
• Southern Europe
• Spain