CapMan has sold the remaining 12% of shares in LUMENE Oy. Following the transaction, the ownership of the company is transferred to the management of LUMENE Oy and to its major shareholder, Langholm Capital.
Funds managed by CapMan sell the remaining 12% of shares in LUMENE Oy to LUMENE Oy. Following the transaction, the ownership of the company is transferred entirely to the management of LUMENE Oy and to its major shareholder, Langholm Capital LLP. The exit will not change CapMan’s outlook estimate for 2014 given on 8 May 2014.
Lumene brand is the market leader in skin care and make-up products in Finland. LUMENE Oy develops, manufactures, sells, and markets high-quality skin care and cosmetic products, together with professional hair care products. LUMENE Oy recorded net sales of approx. EUR 90 million in 2013, of which more than half derived from the international markets – Russia, Scandinavia and USA. The company employs about 530 employees, 330 of whom work in Finland.
“It has been great to take part in developing LUMENE Oy on its path to an international pioneer in the cosmetics market. LUMENE Oy makes world-class R&D, and its products founded on Arctic nature’s ingredients have become its distinct competitive advantage. We are confident that the company will continue its successful growth also in the future,” says Tuomo Raasio, Senior Partner at CapMan and responsible for the investment.
“Cooperating with CapMan has been very pleasant and rewarding. CapMan’s systematic contribution to our strategic approach and value creation is significant. We have learned a lot from CapMan’s experienced team and gained useful insights and know-how on the Russian and Nordic markets,” states Tapio Pajuharju, CEO of LUMENE Oy.
Investors of funds managed by CapMan have previously received a significant amount of the initial investment in LUMENE Oy. Following the transaction CapMan receives carried interest income from CapMan Equity VII B fund. Furthermore, CapMan Equity VII A and Sweden as well as Finnmezzanine III A and B funds move closer to carry.
CapMan and LUMENE Oy share a long history
The story of Capman and LUMENE Oy begun in 2003, when funds managed by CapMan invested in Noiro, a former cosmetics unit of a pharmaceutical company Orion. At the end of 2003 the ownership of Noiro was internationalized as the British capital investor Langholm Capital LLP became a minority owner in the company further strengthening the company’s growth strategy outside the Nordic markets. In 2005 the name Noiro was changed to LUMENE Group. During 2008 the business was further concentrated as LUMENE Oy’s subsidiary Farmos, the manufacturer of detergents and cleaning products, became an independent company. CapMan exited Farmos in August 2010. During the same year CapMan partly exited also LUMENE Oy and sold majority of the company’s shares to funds managed by Langholm Capital LLP.