Before the end of this month, German perfume chain Douglas wants to go public on the Frankfurt stock exchange. The move (and extra investment by current shareholders) should earn the company 1.1 billion euros, which it wants to use to reduce its debts.
“Logical step”
Douglas had already announced intentions for an IPO earlier this year, and now the retailer confirms the timing. The retailer reckons the IPO will raise around 800 million, while the current owners (investment fund CVC and the Kreke family) are also investing another 300 million. They will stay on board and would not sell any shares. CVC, which now owns 85 % of the company, will therefore retain a majority stake even after the IPO. Douglas plans to use the money to reduce its net debt, which currently stands at 3.4 billion euros, to reduce its interest burden.
The IPO is the next logical step for Douglas Group to fully exploit its future potential, CEO Sander van der Laan explained. The omens are good: in the first quarter of the retailer’s new financial year, group sales rose 8 % to 1.56 billion euros, while its EBITDA rose 12.6% to 348.3 million euros.
