In March 2017, the Group acquired a 60% equity stake in Beauteprivee, the French leading online flash sales player specialized in cosmetics, beauty and well-being products, along with the option to purchase the rest of the share capital.
As announced in 2018, the acquisition of the remaining portion of Beauteprivee’s share capital at a price of just over €20 million will be financed by the share capital increase carried out in December 2018, which fetched gross proceeds of €39.5 million. The deal aims to consolidate the Group’s leadership in the beauty and well-being vertical, a market with high growth potential which complements the Group’s traditional fashion offering.
With over 8 million members and over 1,000 brand partners, Beauteprivee continued to post strong profitable growth in 2018. Over the last two years, its net sales have increased by over 50% per year, accompanied by steady growth in the EBITDA margin.
The pooling of staff from the two companies has generated multiple synergies in terms of expertise and know-how. This joint development has enabled the Group to successfully expand its service offering for its core target, the Digital Woman.
Showroomprivé co-founders and co-CEOs Thierry Petit and David Dayan commented on the acquisition: “We are delighted to have completed the acquisition of Beauteprivee’s share capital and to have proved the merits of this strategic acquisition launched in 2017. Together with Beauteprivee, we will continue to develop an attractive offering of competitively priced products tailored to the expectations of the Digital Woman. Over the past two years, we have worked side by side on developing the Beauteprivee brand, which has nearly tripled its membership and more than doubled its turnover. Beauteprivee co-founders Frédéric Bille and Xavier Chauvin, currently co-CEOs, will continue to assist with the ongoing management handover process in 2019.”
Showroomprivé.com is a European player in event-driven online sales that is innovative and specialized in fashion. Showroomprivé proposes a daily selection of more than 2,000 partner brands over its mobile applications or its Internet site in France and in eight other countries. Since its creation in 2006, the company has undergone quick and profitable growth.
Listed on the Euronext Paris market (code: SRP), Showroomprivé achieved a gross business volume with all taxes included of more than 900 million euros in 2018, and net revenue of 672 million euros, growing by 3% over the preceding year. The Group employs more than 1,150 people.