Make-up buy looks nice for 3i
BRITAIN’S oldest private equity house 3i has spent around €120m (£101.6m) on a German firm that supplies a series of cosmetic industry giants.
3i has taken a majority stake in Geka, which makes brushes, applicators and packaging systems and is based in Bechhofen.
The size of its shareholding has not been disclosed but City A.M. understands it is of around 80 per cent.
Geka, set up in 1925, has worked for Chanel, Procter & Gamble, LVMH and Avon and turned over about €100m last year.
Ulf von Haacke, managing director of 3i Germany, said: “Geka’s innovative strength and long-term partnerships with the leading cosmetics manufacturers put the company in an excellent position to foster growth in its highly attractive and stable market segment.”
Geka runs production facilities in Bechhofen and Elgin in Illinois and also has a sales office in France.
The deal comes at a subdued time in the buyout market as banks rein in lending for new deals.
Last month 3i reported investments of £82m in the third quarter, compared with £448m for the first six months of the year.
It wants to grow Geka by giving it access to growth capital and its international network. Franco Lucá, chief executive of Geka, adds: “In addition to expanding our business into the Asian and South American markets, we are looking to enter the cosmeceutical market with 3i’s support.”
Cosmeceuticals are a combination of cosmetics and pharmaceuticals.