MILAN — Amid insistent rumors of an initial public offering presumably set for this year, leading Italian cosmetics supplier Intercos Group has signed a financing agreement of 350 million euros with a pool of banks, including Banca IMI, Banca Nazionale del Lavoro, BNP Paribas, Crédit Agricole Corporate and Investment Bank, Crédit Agricole Italia, Intesa Sanpaolo and Unicredit.
The loan will serve to cover a bond of 120 million euros issued in 2015, among other corporate purposes.
In the third quarter of 2019, Intercos Group registered revenues of 520.46 million euros, up 2.3 percent compared to 508.82 million euros posted in the same period in 2018. In particular, in the first nine months of 2019 makeup accounted for 65 percent of sales, hair and body products for 21 percent and skin care for the remaining 14 percent.
No official procedure has been initiated toward an IPO, although in the latest financial results the company stated it is “evaluating certain potential strategies to support the growth of the company including, in due course, also a possible IPO of the company’s shares on a regulated market.”
This is not the first time Intercos has toyed with the idea of an IPO. The company flirted with a listing in 2006 but plans were shelved given the poor economic climate. In 2014, the firm presented a formal request to list on the Italian Stock Exchange but, in a rapid turnaround, it concluded its road show and released a statement the week before the official listing to withdraw the entire offering, pointing again to deteriorated market conditions.
Founded in 1972 by Dario Ferrari and based in Agrate Brianza — a 40-minute drive from Milan — Intercos manufactures and supplies lipsticks, eye shadows, mascaras, foundations, powders, pencils, nail polishes and skin-care products to around 450 customers globally. It employs 5,850 people worldwide, distributed through 15 commercial offices and 11 research centers in 15 countries.
L Catterton-owned CP7 Beauty Luxco Sàrl holding company and Ontario Teachers’ Pension Plan retain shares in the company, accounting for 33.75 percent and 20.59 percent, respectively.
Last year, the Italian beauty giant was particularly active on the mergers and acquisitions front. In June, it sold back to the firm its minority stake of 20 percent in the Korean company Hana Co. Ltd. As reported, Intercos bought those shares in 2015.
The following month, the group acquired 69 percent of American company Mubic Ltd., which recently purchased 7.69 percent of the My Beauty Brand start-up for 500,000 pounds. In addition, last fall Intercos invested 1.5 million euros to secure 8.8 percent of Arterra Bioscience SpA, an Italian research-based biotech company listed on the Milan Stock Exchange.
As reported, in 2017 Intercos bought skin-, hair and body-care manufacturer Cosmint Group, owned by the Masu family.
Back then, as part of the agreement, Cosmint’s president Decio Masu joined Intercos’ board. Last summer, Masu resigned from the role of director and was succeeded by Nikhil Srinivasan.