Marktlink guides acquisition between Care Cosmetics, 3d investors Cosmetics and Consulta

Description

The Dutch market leader in the distribution of cosmetic products, Care Cosmetics, has acquired the Belgian Consulta. The acquisition is the result of a clear European expansion strategy. Through active management and accelerated digitalization, both businesses achieved 15% growth in 2021, despite - but also thanks to - the corona pandemic. The transaction was accompanied by Marktlink Mergers & Acquisitions.

Care Cosmetics, with branches in Barendrecht and Maaseik, was founded in 1996 by Duco Van Keimpema. The business quickly grew to become the largest supplier to beauticians in the Netherlands, with a portfolio of some 4,000 outlets including mainly beauty salons, but also larger retail businesses such as DA, Douglas and Etos. Well-known brands distributed by Care Cosmetics include RoC, Annemarie Börlind, Guinot, Team Dr. Joseph and own brands Pascaud and Dermaprime.

Accelerated digitalization

Belgian Consulta was founded in Malines in 1981, first as a manufacturer of hair removal products and soon after as a cosmetics distributor. In 2000, current CEO Marijn van Benthem acquired 50% of the shares in Consulta, followed by the remaining 50% in 2011. Today, Consulta has focused on the distribution of personal care brands and related items for beauty salons, specialized foot care professionals, pharmacy and parapharmacy. With over 2,000 professional customers and well-known names such as Multipharma and Medimarket as customers, Consulta is the market leader in Belgium and Luxembourg.

Thanks to active management and accelerated digitalization, among other things, both businesses, which employ about 100 people, achieved over 15% sales growth in the corona year 2021, together accounting for €25 million.

'We had been looking for some time for a successful partner who could help us put our European growth plans on the backburner,' says Duco Van Keimpema. 'It was already clear to us for a long time that Consulta is the right partner for this. Marijn shares our European vision and Consulta's portfolio is highly complementary to that of Care Cosmetics. Moreover, like Care, Consulta showed strength during the past corona period. Both organizations were able to confront threats and exploit new opportunities, including e-commerce. This led to strong results.

'Of course we have known each other for some time,' adds Marijn van Benthem, 'and so we also knew from each other where our ambitions lay. Our knowledge is close to that of Care Cosmetics, we are both market leaders in our region, and when you put those things together you get a huge potential for steady pan-European growth.'

'Merging is not only better for our businesses,' says van Benthem, 'but at least as much for our customers as for the brands we distribute. After all, big players have more resources. That's convenient for the former and interesting for the latter, because with some 6,000 professional salons and practices as customers in the Benelux, you obviously have something to offer internationally.'

Acquisitions in scaffolding

Following the acquisition, Marijn van Benthem will remain on board as a shareholder and within the management team of the expanded Care Cosmetics responsible for Belgium and Luxembourg, to ensure continuity and improvements for Consulta customers and to shape further growth. Care Cosmetics continues to look for further expansion opportunities even after its acquisition of Consulta. "It's no secret that Germany is high on our wish list," says Duco Van Keimpema, "but there are also a few acquisitions in Belgium and the Netherlands in the pipeline for the coming months.

Since mid-2020, Care Cosmetics has been supported in its growth by Belgian family investment company 3d investors, which also previously invested in Studio 100. 'This acquisition is a first and logical step in Care Cosmetics' European expansion,' said 3d investors investors' Investment Director Nicolas Sneyers. 'Early in our partnership with Duco, it became clear that Consulta was the preferred partner to strengthen the activities in the Belgium and Luxembourg. Combined, the two organizations form an even stronger distribution partner serving the entire Benelux market locally. We are therefore very much looking forward to working with Marijn and, as a shareholder, of course support the further growth and internationalization of the business.

For Filip Mariën, managing partner of Marktlink, the new Dutch-Belgian partnership confirms a trend: 'Although it is economically self-evident that Dutch and Belgian businesses merge, from Marktlink we observe a strong growth with regard to Benelux deals in recent years. These are driven, among other things, by consolidation, internationalization and digitalization. This Benelux platform further serves as the basis for building a European player active in specialized beauty distribution, with the backing of the long-term family investor 3d investors. We note that since the entry into Care Cosmetics, as well as in the run-up to the partnership with Consulta, 3d investors has proven to be a great added value, which in combination with the entrepreneurship of Duco and Marijn lays the solid foundation to become a reference player in Europe.