Ardian agrees to buy ADA Cosmetics from Carlyle Group

The Carlyle Group has reached an agreement to sell German premium hotel body care products manufacturer ADA Cosmetics International to Ardian.

Under the terms of agreement, ADA’s management team has taken a minority stake in the company.

The deal represents Ardian’s eighth investment from Ardian Expansion Fund III, which closed in March 2014 at €500m.

Founded in 1979, ADA Cosmetics is a Kehl, Germany-based supplier of cosmetics and accessories, including shampoo, body lotion and soaps, to premium hotels in Europe with growing presence in Asia and the Middle East.

Some of the customers include luxury hotels, such as Brenners Park Hotel, Etihad Tower, Badrutt’s Palace, as well as high-end chains, including Relais & Chateau, Steigenberger and Mövenpick.

ADA has recorded organic revenue growth of more than 20% to more than € 50m since Carlyle’s 2011 investment, and also increased its earnings before interest, taxes, depreciation, and amortization (EBITDA) by nearly 70%.

Carlyle Europe Technology Partners funds the advisory team director Thorsten Dippel said: "Through close collaboration with ADA’s talented management team and Carlyle’s network, we fostered a number of successful initiatives at the company, which strengthened ADA Cosmetic’s position in its core markets and expanded its international presence."

ADA Cosmetics CEO Wilhelm Konning said: "In the past four years, we have significantly expanded our position as market leader for high quality hotel cosmetics in Europe, achieving a market share of 35% in the key German speaking region.

"Together with Ardian, we now want to strengthen our position in the wider European and Asian markets using our innovative products."

Ardian managing director Dirk Wittneben said: "With its innovative and high quality product range, ADA Cosmetics is in a strong position in the European market and has a great potential to grow further internationally.

"We have full confidence in the nmanagement and teh growth strategy it has developed, which focuses both on organic growth and targeted business acqusiitions."

Subject to regulatory approvals, the transaction is expected to complete in third quarter of 2014.