Hagen/Frankfurt, 01 June 2015. The Kreke family and Advent International (“Advent”), one of the largest and most experienced global private equity investors, today announced that they have signed an agreement to sell beauty retailer Douglas (“the Company”) to a holding company jointly owned by CVC Capital Partners (“CVC”) and the Kreke family. The Kreke family will remain a shareholder in Douglas, holding a 15% stake.

Following the offer made by CVC, the Kreke family and Advent International have decided not to pursue the IPO plans for Douglas accommodating the founding family’s desire to further develop the business in a private setting. In the new shareholder structure, the Company will aim to continue to drive its successful strategy and expand its geographic presence as well as its strong footprint in the selective beauty market. Douglas’ experienced senior management team, led by CEO Dr Henning Kreke is committed to take Douglas to the next stage. The transaction is subject to approval by regulatory authorities. The purchase price was not disclosed.

With over 1,700 stores across 19 countries, Douglas is Europe’s leading beauty retailer. Since being taken private in 2013, the Company has transformed from a diversified retail conglomerate to a specialist retailer of selective beauty products. Since the successful acquisition of French beauty retailer Nocibé in 2014, Douglas has significantly increased its international presence and developed from a predominantly German business into a pan-European player.

Dr Henning Kreke, CEO of Douglas and a representative of the Kreke family, said: “Over the past two years, Douglas has become the largest specialist beauty retailer in Europe. It is renowned for its clear customer focus, innovative product portfolio and an impressive in-store and E-Commerce presence. We thank our employees for their continuous commitment and Advent International for the valuable support in aligning our business and positioning it for further growth. We look forward to partnering with CVC as a reliable and strong, long-term partner who will support the company with additional industry expertise and financial resources, to ensure our continued growth.”

Douglas has significantly enhanced its profile and strengthened its footprint in the fast growing selective beauty market. The Company is recognised for its highly diversified product portfolio which consists of up to 35,000 products and related services in the fragrances, skincare, colour cosmetics and accessories segments. Douglas clearly differentiates itself through a broad range of established private label products and renowned premium brands which are exclusively sold in its stores. In addition, Douglas has established strong partnerships with leading domestic and international brand manufacturers.

Together with Advent International, Douglas’ management team has also driven and increased the Company’s revenues through its multi-channel approach, with an integrated in-store, online and mobile offering. It has furthermore implemented comprehensive measures to enhance productivity and efficiency, strongly increasing sales and profitability as a result. In the financial year 2013/2014 Douglas generated pro forma sales of around EUR 2.5 billion and an adjusted pro forma EBITDA of EUR 256 million. The Company’s online offering, which spans 15 countries and has reached a market share of over 50% in Germany, contributed more than 8% of the Company’s total consolidated sales in 2013/2014.

Ranjan Sen, General Manager at Advent International, said: “Douglas has undergone an impressive transformation and consequently addressed the rapid changes in the retail sector. Douglas has built an industry leading retail platform and a strong multi-channel presence. It is excellently positioned to further grow its activities and market leading position. We thank the management team and employees for their dedication and look forward to continuing our partnership with the Kreke family.”