Mezzanine: VR Equitypartner finances growth of HGA Cosmetics
Frankfurt am Main / Koblenz — The Frankfurt-based investment company VR Equitypartner is financing the further growth of HGA VertriebsGmbH(HGA Cosmetics). To this end, VR Equitypartner is providing the Koblenz-based company, which sells hair styling, care and color products, with mezzanine capital in the lower single-digit millions.
HGA Cosmetics was founded about 20 years ago and has been in the hands of the founder ever since. The company distributes a wide range of premium products for hair styling, care and color in the DACH region. To this end, HGA Cosmetics holds the exclusive distribution rights for currently nine niche brands, which are secured by long-term framework agreements. Customers include hair salons and wholesale. HGA has grown strongly in recent years and most recently achieved sales of over 11 million euros with 25 employees.
In its successful development in recent years, HGA Cosmetics has also been able to benefit from the environment, as the market for hairdressing services is growing steadily. The reasons for this include the trends towards natural cosmetics and sustainably produced and environmentally friendly shampoos. This is accompanied by higher consumer demands on products and, at the same time, a greater willingness to spend on corresponding premium products, for which HGA’s brand range is ideally positioned.
In addition to optimizing its existing financing structure, HGA Cosmetics plans to use the mezzanine capital to finance further growth and expand its sales organization.
About VR Equitypartner GmbH
VR Equitypartner is one of the leading equity financiers in Germany, Austria and Switzerland. The company supports medium-sized family businesses in a goal-oriented manner and with decades of experience in the strategic solution of complex financing issues. Investment opportunities include growth and expansion financing, corporate succession or shareholder changes. VR Equitypartner offers majority and minority investments as well as mezzanine financing. As a subsidiary of DZ BANK, the central institution of the cooperative banks in Germany, VR Equitypartner consistently puts the sustainability of corporate development ahead of short-term exit thinking. VR Equitypartner’s portfolio currently comprises around 100 commitments with an investment volume of EUR 500 million.
Consulting firms involved in the transaction by VR Equitypartner:
Tax, Legal, Financial: Warth & Klein Grant Thornton, Düsseldorf