Korres enters investment agreement with Morgan Stanley and Profex

Greek cosmetics producer Korres has reached an investment agreement with private equity fund North Haven Private Equity Asia IV managed by Morgan Stanley and Profex.

Morgan Stanley manages the North Haven Private Equity Asia IV through NHPEA Maiden Holding (NHPEA).

The transaction will be made through Cyprus-based company Nissos Holdings.

As per the agreement, the Korres family will contribute shares representing approximately 30% of the company in exchange for equal shares in Nissos Holdings.

In addition, NHPEA and Profex will acquire 56% and 14% shares in Nissos, respectively, for a total of €48.3m in cash.

Nissos will also buy approximately 52.3% of the share capital of Korres at a purchase price of 5.08 per share.

Completion of the deal is subject to Korres’ lending banks’ approval.

Following the deal, Nissos will hold more than 82% of Korres and will proceed with a mandatory take-over offer (MTO) to buy the remaining shares.

In addition, Korres has made an exclusive licence and supply agreement with Profex, for the distribution of its products in the People’s Republic of China, Hong Kong and Macau.

Following completion of the MTO, the new investors will proceed with a share capital increase of up to €10,000,000 in Nissos to finance the future growth of Korres.