US-based Advent International through its investment vehicle has launched a $2bn bid for German-retailer Douglas Holding.

Douglas Holding’s founding family – Kreke owns a 20% stake in Advent’s investment vehicle and the deal is expected to result in the Kreke’s gaining a greater control over the loss-making retailer.

Advent is bidding €38 per share in cash representing a 9.2% premium over the company’s last closing price.

Agreements have already been reached with three of the largest shareholders of the German retailer that binds them to accept the takeover.

Drugstore owner Erwin Mueller currently owns a 11% stake in the company with shipping conglomerate Oetker having a 26% interest and 50.5% lie with the Kreke family.

The founding family is expected to have a 20% holding in the new structure, once the take over is completed.

Advent is the owner of the Darel fashion brand and the joint takeover bid is to accelerate the growth of the perfume and jewelry retailer.

Commenting on the developments Douglas chief executive Henning Kreke told Reuters, "We want to jointly continue the success story of Douglas in the way that it has been so far."

Douglas is also in the process of carrying out a restricting of its books business Thalia.

Douglas is a perfume, book, jewelry and confection retailer, which owns more than 1,900 stores, more than 1,500 of which are in Germany, in Europe and the US.