MILAN — The Percassi family, owner of Kiko SpA, has a new business partner, private equity fund Peninsula, which, on Thursday, invested in the Italian accessible beauty company through a 80 million euros capital increase.
Upon completion of the deal, which is pending Spain’s antitrust approval, Peninsula will hold a 33 percent stake in Kiko and will be represented in the company’s board.
“This deal represents an important step for Kiko, 21 years after it was established,” the company’s chairman Antonio Percassi said in a statement, adding the goal of the operation is to “consolidate the growth of this brand, which has revolutionized the cosmetics industry by offering to all women quality products at an affordable price.”
In particular, the capital increase will support the company to reach the goals outlined in its 2018-2020 business plan, that calls for investments of 90 million euros.
“A central role in our three-year industrial plan is played by the development of innovative digital channels, both in the sales area, [aimed at] increasingly engage consumers in-store and online, and in the business management,” Percassi said.
Promoted by Kiko’s chief executive officer Cristina Scocchia, who was appointed last year, the strategic plan focuses on three key drivers. These include the redefinition of the company’s geographical footprint, with strong investment in markets experiencing high rates of development as Asia, India and the Middle East; the modernization of IT systems and of the supply chain and the expansion of the e-commerce platform.
In particular, the goal is to double the sales originated from the online store, which accounts for 3.5 percent of the company’s total turnover and is available in 32 countries. To wit, as reported, the brand recently entered the Chinese market through a partnership with Alibaba Group’s marketplace Tmall Global.
Founded in 1997 by entrepreneurs Stefano and Antonio Percassi, Kiko’s turnover in 2017 was 610 million euros, up 3 percent on the previous year. The company operates 950 direct stores in 21 countries, including its largest flagship in Milan.
Established two years ago, Luxembourg-based private equity fund Peninsula counts as main investors institutions in the Gulf area, including the Qatar Investment Authority. Last year, the fund also invested in the NTV-Italo high-speed train service, which was first developed by Diego Della Valle with former Ferrari president Luca Cordero di Montezemolo.