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Douglas Receives Takeover Bid

Advent International and the Kreke family have made a voluntary public offer for Douglas Holding AG.

BERLIN Advent International has made a voluntary public offer for Douglas Holding AG, ending months of speculation over a pending takeover of the German perfumery, jewelry, fashion, confectionery and book retail group.

This story first appeared in the October 16, 2012 issue of WWD.  Subscribe Today.

Beauty Holding Three AG, a Hamburg-based holding company owned indirectly by the global private equity firm Advent International, is offering 38 euros, or $49.23 at current exchange, per share in cash. Already secured is 50.5 percent of Douglas Holding AG’s share capital, with binding commitments secured from the Kreke family, founders of Douglas, as well as the group’s major shareholders Oetker and Müller to accept the offer at the announced price and sell their shares.

With the execution of the tender offer, the Kreke family will become an indirect 20 percent shareholder of Beauty Holding Three AG.

Advent said the accelerating growth of the Douglas perfumery and jewelry division “jointly with the management” was the main objective, with the focus on domestic and international markets plus the rapid integration of cross-channel sales. The book activity is to be restructured and repositioned, while the repositioning of the fashion and confectionery business divisions will be continued “in a profit-oriented way.”

Under terms of the offer, Douglas shareholders will receive a premium of 41.6 percent over the four-week volume weighted average price in January of 26.83 euros, or $34.76, which was prior to the emergence of takeover rumors.

Douglas shares jumped 6 percent in early morning trading in Frankfurt Monday to reach 37 euros, or $47.94.