1. News
March 29, 2021

Douglas reaches debt refinancing deal to fund online operations

Germany-based cosmetics retailer Douglas has reached a €2.55bn ($3.01bn) debt refinancing deal to facilitate its shift to digital platforms.

Germany-based cosmetics retailer Douglas has reached a €2.55bn ($3.01bn) debt refinancing deal to facilitate its shift to digital platforms.

The rescue package comprises of a senior secured loan of €600m ($707m), €1.305bn ($1.5bn) senior secured bond, senior secured payment-in-kind (PIK) bond of €475m ($560m), and a revolving credit line of €170m ($200m).

Douglas’ shareholders, financial investor CVC and the Kreke family, have also injected €220m ($259m) of equity funding.

The company will receive a further €100m ($117.92m) in additional cash reserves.

The deal will stabilise Douglas’ financial position for the next few years as the company continues its growth strategy. The refinancing process is expected to be completed on 8 April.

Douglas CEO Tina Müller said: “We put our entire financing structure on a solid, long-term foundation at an early stage.

“The institutional investors and our owners know about our operational performance as a digital company with stationary business.

“Douglas will systematically expand its potential as Europe’s leading beauty platform and further advance the integration of e-commerce and stationary business.

“The new financing package gives Douglas more leeway for operational business and strategic initiatives.”

Douglas offers more than 130,000 beauty and lifestyle products in online shops, beauty marketplaces and more than 2,000 branches.

The retailer has been hit by lockdown measures during the Covid-19 pandemic, with sales dropping 7.1% to €1.2bn ($1.41bn) in the last quarter of last year.

In the first quarter of the current fiscal year, the company’s online sales increased by 74% to €433m ($510m). It has been investing to expand its online business.

Free Report

What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.