LVMH-backed private equity fund L Catterton has secured approximately €500 million ($538 million) in debt financing from banks including Barclays and UniCredit to support its acquisition of a majority stake in the renowned Italian beauty brand, Kiko. The deal, recently finalized with the Percassi family, founders of Kiko, will see L Catterton purchasing a significant stake in the company while allowing the family to retain a substantial interest.
In addition to Barclays and UniCredit, other underwriters involved in the debt financing are Deutsche Bank and Intesa Sanpaolo. The financing will initially take the form of a bridge loan, which will later be replaced with a bond. These details have been shared by individuals familiar with the matter who preferred to remain anonymous, given the private nature of the discussions.
When approached for comments, spokespersons for Barclays and UniCredit declined to provide any information. Similarly, representatives from Deutsche Bank, Intesa Sanpaolo, and L Catterton did not immediately respond to requests for comment.
Kiko, established in 1997 by Antonio and Stefano Percassi, has grown into a global cosmetic company with an extensive retail network comprising 1,100 stores spread across 66 countries. The firm recently announced that its net revenue for 2023 amounted to approximately €800 million ($861 million), reflecting a notable 20% increase compared to the previous year.
L Catterton has announced that it has entered into a definitive purchase agreement with the Percassi family, the founders of KIKO, to acquire a majority stake in KIKO, with the Percassi family retaining a majority stake in the company. Specific terms of the deal were not disclosed.
