LVMH-backed L Catterton taps barclays, UniCredit for Kiko deal

blog image

The acquisition of Kiko by L. Catterton has secured €500 million in debt financing from various banks.

A number of sources informed us that prominent financial institutions like Barclays Plc and UniCredit SpA are now working on a debt financing deal for €500 million ($538 million) to fund L Catterton’s purchase of a majority interest in the well-known Italian cosmetics company Kiko.

A recent definitive agreement was concluded between the Percassi family, creators of Kiko, and L Catterton, a private equity vehicle backed by luxury behemoth LVMH Moet Hennessy Louis Vuitton SE, to buy a significant position in the company. A substantial portion of the Percassi family’s ownership stake will remain in the company as a result of the agreement.

The sources, who wished to remain anonymous since the talks were confidential, said that Deutsche Bank AG and Intesa Sanpaolo SpA are additional underwriters for the debt financing. The financing will start as a bridge loan and then turn into a bond.

No comment was immediately forthcoming or given by representatives of Barclays, UniCredit, Deutsche Bank, Intesa Sanpaolo, or L Catterton.

Antonio and Stefano Percassi launched Kiko in 1997. Today, the company has 1,100 outlets in 66 countries and is a frontrunner in the cosmetics market worldwide. With a substantial 20% growth from the previous year, the corporation had net revenue of almost €800 million ($861 million) in 2023.

L Catterton has a history of strategic investments in more than 30 global beauty companies, such as Oddity, Intercos, and Maria Nilla, with support from LVMH and the holding company of its creator Bernard Arnault. L Catterton’s acquisition of Kiko strengthens its position in the ever-changing beauty industry, setting the stage for future growth and success.

Ethan Sullivan

Ethan's penchant for the pulse of the fashion world extends to covering lifestyle topics, offering readers a seamless blend of the latest style updates and lifestyle trends.

Read more