Douglas acquires two leading Italian beauty and perfumery chains, Limoni and La Gardenia Beauty, increasing their footprint by 500 points of distribution in Italy. Sales in Italian perfumeries grew 0.9 percent to 2.02 billion euros, or $2.24 billion at average exchange for the period, in 2016, according to data from industry association Cosmetica Italia.
WHO: Limoni and La Gardenia merged in 2013 to form one of the leading beauty and perfumery retailers in Italy with approximately 500 stores across all regions.
The Douglas business was founded in 1821, when Scottish emigrant John Sharp Douglas founded Hamburg’s first perfumery and soap factory. These humble roots have transformed into a pure-play perfumery with a footprint of 2,000 perfumeries across Europe from Portugal to Latvia, in 19 European countries.
WHY: LLG runs the most extensive beauty and perfumery network in Italy, which perfectly complements Douglas’s existing 126 stores in the country.
IN THEIR OWN WORDS: In a press release, Isabelle Parize, CEO of Douglas, said, ”Following our recent acquisition of Bodybell in Spain, we are now strengthening our business in yet another core market in Europe. By integrating LLG into our pan-European store network, Douglas will now become a leading player in the Italian beauty sector. This transaction is a major step on our journey to becoming the No. 1 or strong No. 2 in every market we serve.”
Fabio Pampani, CEO of LLG, said, “With Douglas, we have found the ideal partner for LLG. Becoming part of this industry-leading player in Europe will provide us with the financial and operational resources needed to further develop our business and meet today’s customer needs.”
- Douglas currently has 126 stores in Italy.
- According to WWD, in 2014, Limoni and La Gardenia combined accounted for about 22 percent of cosmetics sales in Italy and a 50 percent share of the perfumery retail market.
- After this acquisition, Douglas will operate more than 2,000 perfumeries across Europe from Portugal to Latvia, combined with a network of online shops, in 19 European countries.
- E-commerce, still underdeveloped for beauty in southern Europe, will be a key pillar in the company’s expansion. According to WWD, online accounted for 12 percent of Douglas’ business in its financial year ending Sept. 30, up from 10 percent a year earlier.
- Douglas, owned by CVC CapitalPartners, acquired Spanish retailer Bodybell earlier this year, adding 200 stores, two e-stores, and the logistics platform of the Spanish competitor.
- Douglas is considering incremental term loan financing to fund a portion of the transaction.
- The companies have agreed not to disclose financial details.
Read the full press release.