Family-owned Italian make-up brand Kiko has sold a 33% stake in the business to UK private equity firm Peninsula for approximately €80MM.
WHO: Accessible beauty company Kiko was founded in 1997 by entrepreneurs Stefano and Antonio Percassi. The company operates 950 direct stores in 21 countries, including its largest flagship in Milan.
Established two years ago, Luxembourg-based private equity fund Peninsula counts as main investors institutions in the Gulf area, including the Qatar Investment Authority.
WHY: The brand will use the capital to achieve its growth goals outlined in its 2018-2020 business plan. They include the redefinition of the company’s geographical footprint, with strong investment in markets experiencing high rates of development such as Asia, India, and the Middle East, the modernization of IT systems and of the supply chain, and the expansion of the e-commerce platform.
IN THEIR OWN WORDS: “This deal represents an important step for Kiko, 21 years after it was established,” the company’s chairman Antonio Percassi said in a statement, adding the goal of the operation is to “consolidate the growth of this brand, which has revolutionized the cosmetics industry by offering to all women quality products at an affordable price.”
- Peninsula will acquire the stake in Kiko through a reserved capital increase.
- Peninsula will hold a 33% stake in Kiko and will be represented in the company’s board.
- Kiko’s turnover in 2017 was 610 million euros, up 3% on the previous year.
- Rothschild acted as financial advisor to Kiko.
Photo credit: Kiko Milano