PARIS — Alès Groupe is in full transformation mode.
The French beauty company, parent of brands including Phyto, Lierac, Jowaé and Laboratoire Ducastel, said on Monday that it has a new minority shareholder, Co-Capital.
Co-Capital is a manufacturer and distributor of medicines and cosmetics, which has been working with Alès Groupe for some years.
Co-Capital is investing 20 million euros in Avila, the holding company of the Alès family, Alès Groupe’s majority shareholder. Then this summer, Alès Groupe will launch a capital increase of up to 25.5 million euros, to be subscribed by Avila for a maximum of 20 million euros.
“This operation permitted the conclusion of a long-term accord with the group’s financial partners in view of rescheduling its debt,” the company said in a statement, referring to a deadline now of 2024. “This new financial structure will give the group the necessary flexibility for the execution of its strategy and the pursuit of its transformation plan.”
The company said its stock, which has been suspended on the Euronext Growth market since March 28, will resume trading on April 30.
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Alès Groupe also said Monday it has appointed Frédéric Poux to the role of chairman of the board, succeeding Raphaël Yousri, who remains a board member.
“The combination of these financial and managerial resources will allow the acceleration of the group’s transformation and the redeployment of its activities,” Alès Groupe said.
That will include the reorganization of its teams in France and redeployment of its key Lierac brand in the premium antiage skin-care category in pharmacies. The group is also to develop the Phyto brand in French pharmacies and abroad, while for Jowaé, the group will expand its reach at home and internationally in pharmacies and drugstores.
Alès Groupe sales in the first quarter of 2019 rose 5.1 percent versus the same prior-year period to 54.6 million euros, mostly buoyed by the Lierac business and the introduction of Joawé outside of France.
In 2018, the company registered sales of 208.3 million euros, down 8.9 percent in reported terms and 10.1 percent on a constant-currency basis.
As previously reported, Alès Groupe sold the storied French fragrance house Parfums Caron to Cattleya Finance for 29.9 million euros last October.
Alès Groupe was founded by Patrick Alès 50 years ago.