The agreement to purchase the company was signed in the form of an assets deal, according to Heliad, although financial terms were not disclosed.
The remaining 60 per cent stake in the company is held by Heliad’s operating partner FCF Frankfurt CapitalPartners, which will provide future management of the company.
Return to strength predicted for Baden-Baden
Baden-Baden owns the cosmetics brands Sans Soucis and Biodroga, which it acquired after purchasing the assets of Fribad Cosmetics Group, which declared itself bankrupt last year.
Baden-Baden itself was taken over by an insolvency administrator in April last year, and its operations were stablised, according to Heliad.
Heliad’s Deputy CEO Christoph Kauter said in a statement that the acquisition of Baden-Baden fits neatly into the company’s business approach.
“Our acquisition of the company is based on our approach of working together with the operational management of small- and medium-sized companies in German-speaking countries to move strong brands and products onto a growth path,” he said.
Growth potential of key brands
Heliad estimates that the Sans Soucis and Biodroga brands will generate sales of approximately €25m per year, and Kauter believes future growth can be realised.
“We are confident that we can achieve future targeted development of Baden-Baden Cosmetics Group, one of the leading cosmetics companies in Germany, using its existing brands and products,” he said in a statement.
According to Kauter, this involves both strengthening the company’s position in Germany, and opening new growth markets with its existing customers.
Kauter told CosmeticsDesign-Europe.com that the company also plans to work with existing clients to strengthen the brands in the markets in which they are already present - Europe, Asia and the US.
He added that Biodroga is already very strong in Asia, with brand sales in this region contributing between 30-35 per cent of total revenue. Sans Soucis has large potentional in Asia, said Kauter, due to its positioning as a naturals brand.
The transaction is expected to be completed by 30 April 2010, according to the parties involved.