Intercos’ main investors agreed to sell minority stakes in the subholding companies controlling the cosmetics group to Singapore’s sovereign wealth fund GIC.

WHO: Founded in 1972, Intercos manufactures and supplies lipsticks, eye shadows, mascaras, foundations, powders, pencils, nail polishes, and skincare products to around 450 customers globally. It employs about 5,800 people worldwide, distributed through 11 research centers, 15 production plants, and 15 sales offices on three continents.

Established in 1981 to manage Singapore’s foreign reserves, GIC is a global long-term investor with over $100 billion in assets in more than 40 countries worldwide.

WHY: The deal intends to further strengthen the shareholding structure and support Intercos in its development plans.

DETAILS:

• Intercos’ founder and Executive Chairman Dario Ferrari and his family holdings Dafe have signed an agreement with an affiliate of the Singapore Sovereign Wealth Fund GIC for the sale of minority stakes in the subholdings that control Intercos.
• Financial details and the size of the stake were not disclosed, but Reuters reported Ferrari would retain control of both the holdings and the company after the deal.
• At the close of the deal, GIC will hold a minority stake in Dafe 3000 Srl, Dafe 4000 Srl, and Dafe 5000 Srl, which together control 44.4 percent of Intercos.
• L Catterton-owned CP7 Beauty Luxco Sàrl holding company and Ontario Teachers’ Pension Plan also retain shares in the Italian cosmetic manufacturer, accounting for 33.75 percent and 20.59 percent, respectively.
• In 2019, Intercos reported revenues of 712.7 million euros, up 3 percent compared to the previous year. In particular, makeup accounted for 66 percent of revenues, hair and body products for 20 percent, and skincare for the remaining 14 percent.
• Earlier this year, the firm took over the joint venture it created with fashion and beauty retailer Shinsegae International in 2015 by acquiring the remaining 50 percent of Shinsegae Intercos Korea Inc.
• Earlier this year, Intercos Group acquired the remaining 50% of the joint venture Shinsagae Intercos Korea Inc. from Shinsagae International Inc. Following this transaction, Intercos will hold 100% of Intercos Korea.