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Reuters – Apax Receives Bids for LR Health & Beauty

Private equity group Apax has received tentative bids for its direct sales company LR Health & Beauty, three sources close to the transaction told Reuters. LR Health & Beauty sells cosmetics, fragrances and nutrition products mainly in Germany, but also in other European countries including France, Italy and Russia. It has 1,000 staff and 300,000 sales partners.

(Reuters) – Private equity group Apax has received tentative bids for its direct sales company LR Health & Beauty, three sources close to the transaction told Reuters.

 

“Private equity investors as well as strategic players have handed in offers”, one of the sources said, adding the seller which is being advised by UBS and Societe Generale is hoping to fetch a price tag of up to 8-9 times earnings before interest, taxes, depreciation and amortization.

 

Another source source close to the transaction said LR Health & Beauty last year posted earnings before interest, taxes, depreciation, and amortization of roughly 40 million euros.

 

The auction is another example of private equity groups moving to sell some of their most mature companies after a slow year for deals in 2012.

 

Apax is under pressure to show it can make money on its portfolio investments as it is in the midst of raising a new buyout fund, having already secured 4.3 billion euros out of its 9 billion euro target.

 

LR Health & Beauty sells cosmetics, fragrances and nutrition products mainly in Germany, but also in other European countries including France, Italy and Russia. It has 1,000 staff and 300,000 sales partners.

 

In 2011, the Ahlen, Germany-based company some of whose products are named after prominent personalities like Bruce Willis, Heidi Klum or Michael Schumacher posted sales of 230 million euros ($300 million). Revenues were up 5 percent in the first half of 2012, the company said in August.

 

Commerzbank, DZ Bank and Societe Generale are among a club of banks working on putting financing together for bidders, sources close to the transaction said.

 

Apax, which bought LR Health & Beauty in 2004, and the banks declined to comment.