Ontario Teachers’ to invest in cosmetics business Intercos

Ontario Teachers’ Pension Plan has agreed to acquire a minority stake in Intercos SpA, a Milan, Italy-based supplier of colour cosmetics and skincare products. No financial terms were disclosed. Intercos said President and CEO Dario Ferrari will retain control following the deal, which is intended to strengthen the shareholder structure and help the company pursue development plans. Earlier in 2017, Intercos bought Cosmint SpA, a maker of skin, hair and body care products. Founded in 1972, Intercos has been backed by U.S. consumer private equity firm L Catterton since 2014.

PRESS RELEASE

Intercos: Partnership with Ontario Teachers’ Pension Plan

August 07, 2017

The transaction strengthens Intercos’ shareholder structure as well as the Company’s ability to maintain a dynamic development plan
Ontario Teachers’ Pension Plan will hold a minority stake in Intercos
Following the agreement, Dario Ferrari will retain control of the Company

AGRATE BRIANZA (MB) – Intercos S.p.A. (“Intercos” or the “Company”) today announced that Dafe 4000 S.p.A. and Dafe 5000 S.r.l., holdings headed by Intercos President and Chief Executive Officer Dario Ferrari, and CP7 Beauty Luxco S.à.r.l. (a holding company of L Catterton, the largest and most global consumer-focused private equity firm in the world), have signed an agreement with Ontario Teachers’ Pension Plan (“OTPP”), Canada’s largest single-profession pension plan, for the sale of a minority stake in Intercos.

In accordance with the agreement, Dario Ferrari will retain the majority of voting rights (in light of multiple voting shares) and the right to appoint the majority of the Directors of Intercos.

OTPP’s investment will strengthen the shareholder structure and enable the Company to continue pursuing its future development plans.

Dario Ferrari, President and CEO of Intercos, said:

“I’m very pleased to be partnering with OTPP. Intercos is developing in a dynamic way, as evidenced by the recent Cosmint acquisition, which enables us to improve our presence in several market segments and to significantly increase our production capacity. OTPP is an ideal financial partner and we are excited to partner with their outstanding team to grow and expand Intercos.”

Jo Taylor, Senior Managing Director of Ontario Teachers’ said

“Our Relationship Investingteam has the knowledge, experience and financial backing to complete sophisticated deals and foster a long-term relationship with Intercos. We are pleased to have taken a stake in a world leader in the creation, development and contract manufacturing of make-up cosmetics and skin care and look forward to working with Dario Ferrari, his team and L Catterton to develop the business further.”

Nikhil Thukral, Managing Partner of L Catterton said:

“We are thrilled to support Dario and the entire Intercos team as the Company continues its rapid growth and expansion. Intercos is a truly unique player in the industry, with a diverse product offering and a robust global footprint. We look forward to the next chapter of this partnership as we work with Dario and OTPP to further strengthen Intercos’ position as a leading global beauty brand.”

The transaction is subject to the receipt of the standard consents from the Company’s lenders.

For further information:

Image Building

Simona Raffaelli, Alfredo Mele, Ilaria Mastrogregori, Vanessa Corallino

Ph. +39-02.89011300/Email: intercos@imagebuilding.it

Ontario Teachers’ Pension Plan

Lori McLeod

Ph: +1 416-730-7207/Email: lori_mcleod@otpp.com

Photo courtesy of Intercos SpA