CVC Capital Partners has closed the acquisition of PDC Brands.
The deal, for $1.42 billion, was unveiled June 1. PDC chief executive officer James Stammer will remain at the helm, with an unchanged strategy — make acquisitions, and grow brands organically to expand the business.
PDC is composed of brands including Dr. Teal’s, Cantu, Body Fantasies, BOD Man and Eylure. PDC posted about $430 million in sales for 2016.
“CVC is 100 percent committed to our aggressive merger and acquisition focus within the consumer space,” Stammer said. “We want to do a lot more of what we’ve been doing for the last five years, so we’re going to continue to identify brands and bring them into our company and then grow them organically and rapidly.”
Under CVC, PDC will also look to expand further in international markets, Stammer said. About 25 percent of the company’s sales come from international markets, led by the U.K., followed by South Korean, Japan, Mexico, Latin America, Canada and Africa.
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PDC quadrupled its revenues and increased earnings before interest, taxes, depreciation and amortization by more than five times under Yellow Wood, the firm said in a statement. PDC posted about $110 million in EBITDA for 2016, according to industry sources.
“Yellow Wood invested in our company five years ago, when we were primarily known as a leading mass-market fragrance company and [they] shared our vision…to become a leading diversified consumer goods platform company with global reach,” said Stammer. “They really helped us invest in businesses that we could cultivate and grow and that’s been our track record with Dr. Teal’s and Cantu and Eylure — we’ve taken businesses that had massive consumer potential and were able to add them into our sales and marketing organization and grow them rapidly and bring in millions of new consumers into the franchise.”
“Our focus at Yellow Wood going forward will be to continue to identify similar companies that can benefit from our operational expertise to build a portfolio of strong companies that will create exceptional value for our investors,” said Dana Schmaltz, founding partner of Yellow Wood.