HIG Bayside Capital (Bayside), the distressed debt and special situation affiliate of private equity firm HIG Capital, is to sell the Beauty Bell Chain (Bodybell) following a restructuring of the company’s operations, to Douglas, a European retailer in the selective beauty market.
Bodybell, founded in the 1970s, is a distributor of perfumery and household products in Spain. The company’s product range comprises selective and mass-market beauty as well as personal and home care products.
Bayside acquired control of Bodybell through a complex financial restructuring that resulted in a debt-for-equity swap in 2015. Bayside also underwrote a new money facility to finance an ambitious repositioning plan that included store portfolio adjustments, a new management team and a new brand image for the Company.
The agreement is subject to a number of conditions, including merger control approval. The companies have agreed not to disclose financial details of the transaction.
Giuseppe Mirante, managing director of HIG Bayside Capital, says: “Bayside first acquired Bodybell debt in 2009 and subsequently injected new capital into the business as part of a debt for equity conversion, backing the operational restructuring of the company amid increasing competition in its market. This exit proves Bayside’s ability to create value in complex special situations across Europe by leveraging off our local presence and by working in partnership with key stakeholders.”
Leopoldo Reaño, principal of HIG Capital in Spain, adds: “This transaction underscores HIG’s capacity to support the transformation and repositioning of leading companies facing temporary challenges and assure their long term success. With the European industry leader Douglas, we have found the ideal partner for the future of Bodybell, allowing the company to move to its next stage of development and further build on its leading industry position. We are confident that this transaction will generate substantial value for all stakeholders.”
