L Catterton Acquires Majority Stake in Kiko Milano
Acquisition Announcement
L Catterton, a prominent private equity fund backed by LVMH Moët Hennessy Louis Vuitton, has announced the acquisition of a majority stake in the Italian beauty brand, Kiko Milano. This development is part of L Catterton's broader strategy to expand its presence in the Italian market.
Kiko Milano's Market Position
Kiko Milano, established in 1997 by Antonio and Stefano Percassi, has become a significant player in the global beauty industry. In 2023, the company reported sales of €798 million, an increase of 19% from the previous year. It currently operates over 1,100 stores in more than 66 markets worldwide.
Leadership and Future Directions
The founding Percassi family will retain a minority stake in the company, with Antonio Percassi continuing as president. CEO Simone Dominici will also remain in his role, focusing on leveraging L Catterton’s resources to expand Kiko Milano’s global footprint. The strategic partnership aims to enhance the brand’s market penetration and introduce innovative products and services.
Strategic Impact
This acquisition by L Catterton is expected to drive Kiko Milano's growth, particularly in the U.S. where the brand experienced significant sales growth. The company's strategy will focus on an omnichannel approach and expansion into new geographic markets, supported by L Catterton’s expertise in the beauty sector.
L Catterton's Portfolio and Experience
L Catterton has a history of investing in successful consumer brands globally, with investments in the beauty sector including Tula, Merit, and Elemis. The fund’s experience in scaling businesses is anticipated to support Kiko Milano’s efforts to enhance its product offerings and market reach.
Conclusion
The partnership between Kiko Milano and L Catterton marks a pivotal step in the brand’s strategy to further establish itself as a leader in the global beauty industry. Stakeholders and consumers alike anticipate the introduction of new products and expansion into new markets as a result of this collaboration.