MILAN — Intercos’ founder and executive chairman Dario Ferrari and his family holdings Dafe have signed an agreement with an affiliate of the Singapore sovereign wealth fund GIC for the sale of minority stakes in the subholdings that control Intercos. Financial details and the size of the stake were not disclosed.
At the end of the operation, which is subject to the customary approvals from antitrust authorities, GIC will therefore hold a minority stake in Dafe 3000 Srl, Dafe 4000 Srl and Dafe 5000 Srl, which together control 44.4 percent of Intercos.
L Catterton-owned CP7 Beauty Luxco Sàrl holding company and Ontario Teachers’ Pension Plan also retain shares in the Italian cosmetic manufacturer, accounting for 33.75 percent and 20.59 percent, respectively.
According to a statement released on Monday, the deal intends to further strengthen the shareholding structure and support Intercos in its development plans.
In particular, the operation will build up the company’s market presence in the Far East as Ferrari underscored the importance of the partnership with GIC “not only for the size and relevance of the group, but also for its credibility and strength in Asia, which is the region with the highest development potential for our sector and for Intercos.”
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This deal will add to another operation the beauty company recently finalized in the market. As reported earlier this year, the firm took over the joint venture it created with fashion and beauty retailer Shinsegae International in 2015 by acquiring the remaining 50 percent of Shinsegae Intercos Korea Inc. The move intended to leverage the Intercos Korea company as a key hub for Asia since it became its main research and development center for the area and a global center of excellence for categories including foundations and skin care.
Arjun Khullar, head of GIC’s integrated strategies group, said the fund confides “in the long-term potential of the company given its broad and diversified portfolio of capabilities, balanced customer base, as well as its strong focus on innovation.“
Established in 1981 to manage Singapore’s foreign reserves, GIC is a global long-term investor with over $100 billion in assets in more than 40 countries worldwide.
Founded in 1972 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 about 5,800 people worldwide, distributed through 11 research centers, 15 production plants and 15 sales offices on three continents.
In 2019, the group reported revenues of 712.7 million euros, up 3 percent compared to the previous year. In particular, makeup accounted for 66 percent of revenues, hair and body products for 20 percent and skin care for the remaining 14 percent.
This year, the cosmetics manufacturer was also planning the IPO, which was eventually postponed in light of the pandemic and consequent change of market conditions.
In an interview with WWD earlier this year, Ferrari commented on the listing plan stating: “I don’t think we could talk about an IPO before two years from now, so let’s wait.”
The company has toyed with the idea of a listing before, but in 2006 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.