MILAN – L Catterton’s shopping spree in Italy is not over.
Following the announcement of the potential deal with Tod’s earlier this year, the private equity fund backed by LVMH Moët Hennessy Louis Vuitton has targeted beauty powerhouse Kiko Milano.
After months of speculation, L Catterton said Friday it has acquired a majority stake in the company. Financial terms were not disclosed.
Established in 1997 by entrepreneurs Antonio and Stefano Percassi, Kiko Milano is controlled by Percassi’s Odissea Srl holding and generated sales of 798 million euros in 2023, up 19 percent versus the previous year and ranking 49th in WWD Beauty Inc’s annual ranking of the world’s largest beauty companies by sales. The firm counts more than 1,100 stores globally and sells its products in more than 66 markets.
The founding family will continue to retain a minority stake in the company, with Antonio Percassi retaining his role as president of the firm. Simone Dominici will also continue as chief executive officer of the company.
“We founded, in the late 1990s, a brand that has evolved into an international hallmark, cherished by clients across generations and experiencing exponential growth,” said Antonio Percassi. “We are very pleased to partner with L Catterton, whom we believe will accelerate Kiko’s global expansion, leveraging their extensive expertise in the cosmetics sector and a global network of commercial opportunities and talent.”
Nik Thukral, a managing partner in L Catterton’s Flagship Buyout Fund, said the fund has “long admired Kiko for its distinctive style, quality products, and global appeal” and looks “to further build on the strength of this iconic brand, alongside industry veteran and L Catterton senior advisor John Demsey.”
To be sure, the deal aims to further accelerate the brand’s global growth, especially in the U.S. Last year, Kiko’s sales in the Americas grew 43 percent versus 2022, while those in Asia and Europe were up 21.3 percent and 18.6 percent, respectively.
“Innovative products’ quality, accessibility, personalized consultancy and captivating packaging design stand as the brand’s distinctive elements,” said Dominici. “I am confident that this collaborative partnership with L Catterton will help us to bring Kiko to new heights. With their depth of experience investing in the beauty category across markets, they will be able to offer valuable insights to help us further scale our brand, by pursuing an omnichannel strategy and establishing new and relevant geographical footprints, such as the U.S., also aided by the support of John Demsey.”
In 2022, the Percassi family bought back the 38 percent stake private equity fund Peninsula Capital had held in the firm since first investing 80 million euros in the company in 2018.
The move isn’t L Catterton’s first in the Italian beauty scene. The private equity firm took a minority stake in cosmetics manufacturing giant Intercos Group back in 2014 and still retains a stake in it via the L Catterton-owned CP7 Beauty LuxCo Sàrl holding company.
Overall, L Catterton’s current and past beauty investments also include Tula, Merit, Oddity (parent company of Il Makiage), Bliss, Function of Beauty, The Honest Company, Elemis, Nutrafol and Marubi. Last year alone, it made investments in Swedish sustainable professional hair care Maria Nila, Irene Forte Skincare and color cosmetics label Dibs Beauty.
“Kiko’s unrivaled scale, first-to-market advantage and ability to provide unmatched product offerings at accessible prices uniquely positions the company for global success,” said Arabella Caporello, a partner in L Catterton’s Europe Fund. “We have significant experience scaling leading brands in Europe, and we look forward to working alongside CEO Simone Dominici and his team to capture the company’s incredible potential.”
The funds managed or advised by L Catterton Management represent approximately $35 billion of investments through three multiproduct platforms: private equity, credit and real estate. Founded in 1989, the group has made approximately 275 investments in some of the world’s most iconic consumer brands. L Catterton, for example, in 2021 took a majority stake in Etro, and holds stakes in A.P.C., Ganni and Birkenstock.
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