MUNICH, Dec. 23, 2012 /PRNewswire/ -- Funds advised by
Apax Partners ('Apax Funds') have reached an agreement to sell LR
Health & Beauty Systems ('LR') to a consortium. The consortium
consists of private equity firms Bregal Capital and Quadriga
Capital. LR is a strongly growing company, which markets cosmetics,
personal hygiene products, dietary supplements, perfumes and
jewellery through the direct sales channel. The new shareholders
will support LR Group in expanding its national and international
activities. The transaction is subject to approval by the relevant
anti-trust authorities. The parties agreed not to disclose the sale
price.
"LR Health & Beauty has a unique business model within the
direct sales market. From the beginning the management-team, headed
by Jens Abend, and the employees
have demonstrated to us through their enthusiasm and dedication
that LR is an exceptional company with high growth potential
especially in foreign markets. We want to support the group and
people working for it to realize that potential," says Andreas Fendel, founding partner of Quadriga
Capital.
Florian Schick, Partner of Bregal
Capital, comments: "LR is an innovative company with a superior
value proposition to its sales partners and customers, and we are
excited to support Jens Abend and
his team in the continued internationalisation of the
business."
Apax Funds bought into LR in November
2004, and then gradually acquired a majority share. In
partnership with Apax, LR's management team revised the corporate
strategy and professionalised its internal processes. They also
drove the internationalisation of the business model forward and
expanded the product range. LR now generates 52 per cent of its
sales outside of Germany,
predominantly in Western and Southern
Europe. LR has been expanding in Russia, Kazakhstan, Albania, Bulgaria and Romania. Through collaborations with
international stars like Bruce
Willis, Heidi Klum,
Michael Schumacher and Boris Becker new star products have been
launched, especially in the perfume and cosmetics segment. During
the period of the Apax Funds' investment, LR's sales rose from
around €180 million (2004) to approximately €230 million (2011).
Between 2004 and 2012 the number of sales partners increased from
about 190,000 to about 300,000. The number of staff increased from
circa 570 to around 1,000.
"The successful investment of Apax Funds in LR highlights the
expertise of Apax Partners to identify attractive business models
in our key industries and to develop them over the long-term.
Together with CEO Jens Abend and his
team, we have driven the professionalisation of LR, supported the
company's sustainable growth, and enabled it to continue its
international expansion. We are proud of having been a partner of
LR and its management team over the past eight years," says
Ralf Gruss, Partner and COO at Apax
Partners.
"Since the investment of Apax Partners, LR has developed into a
leading direct sales company in Europe. As market leader in Germany in its segment, LR has consistently
and constantly grown in foreign markets. Apax believed in the
strength and business model of our company right from the very
beginning. The cooperation with Apax was exemplary. Now a new
chapter in the LR story is beginning," says Jens Abend, CEO of LR.
Apax has deep retail and consumer business expertise and a
successful track record of investing in this sector. Over the past
ten years, funds advised by Apax have invested approximately €5.2
billion in retail and consumer businesses. Current and historic
notable investments in this sector include: Tommy Hilfiger, the global lifestyle brand;
Advantage Sales & Marketing, the leading provider of outsourced
sales and marketing services to consumer packaged goods companies
and retailers in North America;
Tnuva, the largest manufacturer and distributor of dietary and
other food products in Israel; and
Takko, a fast growing value fashion retailer in Europe.
Apax was advised by UBS and Societe Generale.
About Apax Partners
Apax Partners is one of the world's leading private equity
investment groups. It operates globally and has more than 30 years
of investing experience. Funds under the advice of Apax Partners
total over US$35 billion around the
world. These Funds provide long-term equity financing to build and
strengthen world-class companies. Funds advised by Apax Partners
invest in companies across its global sectors of Tech &
Telecom, Retail & Consumer, Media, Healthcare and Financial
& Business Services. For further information about Apax, please
visit: www.apax.com.
About LR Health & Beauty Systems GmbH
LR Health & Beauty Systems GmbH, one of Germany's leading direct sales enterprises for
body care and beauty products, is represented in 30 countries and
with approx. 1,000 employees and around 300,000 independent sales
partners, LR is one of the leading global players in the industry.
Its pillars of success include German quality products, a unique
car plan, a professional training and service program for sales
partners, a fair and transparent marketing plan as well as the
cooperation with celebrities like Bruce
Willis, Heidi Klum,
Michael Schumacher, Boris Becker and Marcus
Schenkenberg. LR is also a member of the following
associations: Verband der Vertriebsfirmen Kosmetischer Erzeugnisse
e.V. (VKE) [German cosmetics distributors and marketing
association], Bundesverband deutscher Industrie- und
Handelsunternehmen fur Arzneimittel, Reformwaren,
Nahrungserganzungsmittel und Korperpflegemittel e.V. (BDIH),
[Association of German industrial and trading firms for
pharmaceuticals, health care products, food supplements and
personal hygiene products], Bundesverband Direktvertrieb
Deutschland e.V. (BDD) [German Association of Direct Sales] and the
European Direct Selling Association (SELDIA). Further information
at www.lrworld.com.
About Quadriga Capital:
Quadriga Capital is a leading investment firm in Germany and neighbouring countries that
specializes in acquiring and supporting medium-sized companies that
pursue long-term transformation and growth strategies. Investors in
Quadriga Capital funds are international institutional investors,
such as pension funds and insurance companies. Quadriga Capital's
portfolio companies include among others AHT Austria Haustechnik
GmbH in Austria, the Ameos Group
in Zurich, Kinetics in
Eschau/Bavaria, the Lapp Group in Stuttgart or the Ipsen Group in Kleve/North
Rhine Westphalia.
About Bregal Capital:
Bregal Capital is a private equity firm with fund commitments of
more than €3 billion and has since inception invested in over 20
companies. Bregal Capital is currently investing from The Bregal
Fund III L.P., a €1 billion fund, targeting middle market
investments in buy out and development capital.
For more information contact:
Apax Partners
Ben
Harding
Tel: +44 (0)20 7872 6401
Email: communications@apax.com
Apax – Germany
enquiries
Reinhard
Saller
Ira Wulfing Kommunikation
GmbH
Tel: +49 (0)89 2000
3038
Email:
reinhard.saller@wuelfing-kommunikation.de
Apax – US enquiries
Kekst and Company
Todd Fogarty
Tel: +1 212 521 4854
Email: todd-fogarty@kekst.com
Bregal Capital
Florian Schick
Tel.: +44 2075914200
florianschick@bregalcapital.com
Quadriga Capital
Dr. Andreas Fendel
Tel: +49 69 79500025
a.fendel@quadriga-capital.de
SOURCE Apax Partners