Munich/Stockholm – AURELIUS Equity Opportunities SE & Co. KGaA (ISIN DE000A0JK2A8) (“AURELIUS”) has successfully completed the sale of its subsidiary Scandinavian Cosmetics Group to Accent Equity 2017, a Scandinavian investment fund.
Successful carve-out and transformation into leading Nordic brand management company
Scandinavian Cosmetics serves brand owners such as Coty, Clarins and Sensai as an exclusive value add distributor for cosmetic products in the Nordics. AURELIUS had acquired the business from Swiss Valora Group in January 2016. The acquisition of the former Valora Trade Division consisted of FMCG activities (today portfolio company Conaxess Trade) and cosmetics activities (today Scandinavian Cosmetics Group), both managed out of Switzerland at acquisition. After separating both businesses, establishing a stand-alone financing structure and implementing an independent management, an extensive transformation program was implemented including investments in new warehouse management systems, the introduction of a new KPI reporting, a revision of the existing product range and category expansion. Major efficiency improvement and business development projects such as the development of a new e-commerce and online strategy further drove the company’s growth. Scandinavian Cosmetics Group’s strategy towards one Nordic group drove an ambitious regional expansion into the Danish and Finnish markets.
Accelerated growth through active M&A consolidation
In addition to operational changes, two strategic add-on acquisitions substantially improved the company’s presence as the largest manufacturer-independent luxury and consumer brand management company in the Nordics, leading to a 25 percent revenue increase. “ Scandinavian cosmetics has undergone an extensive transformation program”, said Florian Muth, Managing Director at Aurelius. “With the support of AURELIUS, the company has developed into a strong and leading market player. The transaction clearly illustrates that our intense operational focus combined with a dedicated growth strategy pays off.”
The buyer, Accent Equity, will support Scandinavian Cosmetics in its next growth phase.
On this transaction, AURELIUS was advised by ABG Sundal Collier (M&A), PwC (Transaction Services and Tax) and Vinge (Legal).