L Catterton to acquire majority stake in Italian beauty giant KIKO Milano
In a significant development in the global beauty industry, L Catterton, a leading consumer-focused investment firm, has entered into a definitive agreement to acquire a majority stake in the renowned Italian beauty brand, KIKO Milano. This acquisition from the founding Percassi Family, who will retain a significant interest in the company, marks a pivotal step in KIKO’s expansion strategy. The financial terms of the deal have not been disclosed.
Established in Bergamo, Italy, in 1997 by Antonio and Stefano Percassi, KIKO Milano has grown into one of the world’s largest privately-owned color cosmetics brands. Known for its deep Italian heritage and a diverse portfolio of high-quality products at accessible prices, KIKO has cultivated a strong presence worldwide. With over 1,100 stores across 66 countries and a robust e-commerce platform, the brand recorded a net revenue of approximately €800 million in 2023, demonstrating nearly 20% year-over-year growth.
Antonio Percassi, founder and continuing President of KIKO, expressed his enthusiasm about the partnership with L Catterton, highlighting the firm’s capability to fuel KIKO’s global expansion through its extensive expertise and network in the cosmetics sector. Nik Thukral, Managing Partner at L Catterton’s Flagship Buyout Fund, praised KIKO’s unique style and global appeal, looking forward to building on the brand’s iconic status with the help of industry veteran John Demsey.
Arabella Caporello, a Partner at L Catterton’s Europe Fund, remarked on KIKO’s market leadership and its potential for further success, noting the company’s first-to-market advantage and compelling product offerings. She anticipates significant growth as the brand leverages L Catterton’s experience in scaling leading European brands.
Simone Dominici, CEO of KIKO Milano, underscored the brand’s commitment to quality, accessibility, and innovation, which he believes will reach new heights through the partnership with L Catterton. The collaboration aims to enhance KIKO’s omnichannel strategy and expand into new markets, including the United States, with strategic support from John Demsey.
The transaction was facilitated with advisory services from notable firms such as Bonelli Erede and PriceWaterhouseCoopers for L Catterton, and BofA Securities, Intesa Sanpaolo, BNP Paribas, Gatti Pavesi Bianchi Ludovici law firm, and Deloitte for the Percassi Family.
The acquisition of KIKO Milano by L Catterton is a testament to the strength and potential of KIKO’s brand in the global beauty market. L Catterton’s expertise in nurturing and expanding consumer brands is likely to propel KIKO into new markets and dimensions of product innovation, reinforcing its position as a leader in the beauty sector. This strategic move is poised to create substantial value for both KIKO Milano and its customer base by enhancing product accessibility and broadening its market reach.