CVC's Douglas buys LLG from Orlando Management

As part of the deal, the controlling stakeholder Orlando Management fully exited the asset. According to a statement, Douglas is considering a loan to fund a portion of the transaction.

Following the deal, Douglas aims to increase its presence across the Italian market, in which it already manages 126 stores. Furthermore, the deal follows Douglas's recent acquisition of the Spanish business Bodybell from HIG Bayside Capital in March 2017.

At completion of the acquisition, the merged group expects to manage 2,000 stores and several online retail platforms in 19 European countries. In 2016, Douglas posted €2.7bn in revenues and currently employs 18,000 people.

CVC acquired the German company from Advent International in June 2015. The Kreke family, which manages the business, reinvested for a 15% stake as part of the reported €2.8bn deal. Advent acquired Douglas via a public tender offer in 2013, in a deal valuing the business at around €1.5bn.

Previous funding
In September 1998, Arca Merchant, Marbert and GE Capital Interbanca backed Limoni's management buy-in.

Eight years later, Interbanca, Marbert and San Paolo IMI led the company's SBO in May 1999. The deal saw Arca Merchant exit its 20% stake in the business, according to unquote" data.

Seven years later, Bridgepoint backed Limoni's tertiary buyout in June 2006, acquiring a 70% stake, while founder Piofrancesco Borghetti increased its stake up to 30%. Ardian provided mezzanine financing to support the transaction.

One month later, L Capital and Ergon Capital Partners jointly acquired a 70% stake in La Gardenia from the Croci family, which retained a 30% stake. Banca Intesa provided the debt financing.

In May 2011, Bridgepoint fully acquired La Gardenia. The GP invested via its Europe VI fund.

In 2012, Orlando acquired a 50% stake in Limoni alongside Bridgepoint and, subsequently, acquired a 25% stake in La Gardenia in 2013. As part of the latter transaction, one of the GP's institutional investors co-invested with Orlando, acquiring a 25% stake.

Following the acquisitions, the GP merged the business under the new group LLG in 2013. Since then, the business underwent a restructuring plan led by Orlando, which saw the closure of 150 retail stores.

Company
Founded in 2013, Milan-based LLG manages 500 stores in Italy focusing on the personal care and perfumery segments.

According to local press reports, the group posted a turnover of €356.8m and a €20.9m EBITDA in 2015.

People
Douglas Holding – Isabelle Parize (CEO).
Leading Luxury Group – Fabio Pampani (CEO).

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• Topics
• Exits
• Portfolio management
• Consumer
• Southern Europe
• Build-up
• Italy
• CVC Capital Partners
• Orlando Management GmbH