CapMan buys E100m cosmetics business

The Finnish private equity house is to pay around E100m to acquire the cosmetics and detergent business unit of Finnish healthcare group Orion Group in one of the firm’s largest private equity transactions.

CapMan, the Finnish private equity and venture capital investor, has backed a management buyout at Noiro, the cosmetics and detergent business unit of Orion Corporation, a Finnish healthcare group.


The deal is worth approximately E100m, making it one of the largest investments ever made my CapMan. The final price will be agreed in early October, when the transaction is expected to close.


Noiro produces cosmetics, personal hygiene and hairdressing products as well as institutional cleaning products with own brands accounting for over 80 per cent of net sales.


Noiro also markets Wella hair cosmetics in Finland and produces the Lumene cosmetics line, which accounts for more than one-third of the net sales and two-thirds of exports. According to a statement issued by CapMan, Lumene has 25 per cent of the Finnish market for cosmetics.


The transaction includes all the business operations and the related assets and liabilities of Noiro and its subsidiaries. Noiro’s net sales in 2002 totalled E135.3m and operating profit was E9.8m.


Noiro has been part of the Orion Group since it was established in 1948. In 2002 it contributed eight per cent to the group’s net sales and nine per cent of the group’s operating profit.


Under the deal, Noiro’s 850 employees will transfer to a newly-formed company, Noiro Ltd. The company’s management, led by managing director Pekka Rautala, is to take an equity stake in the business of between five and seven per cent.


According to Orvo Siimestö, senior advisor at CapMan in Finland, Noiro will seek to expand its operations in the Nordic countries, Russia, the Baltic countries and Poland. “Noiro’s strong market position in Finland and its promising international growth opportunities make it an attractive company. Strong brands like Lumene, skilful personnel and steadily growing sales and profits constitute a firm basis for the further development of the company,” he said.


The sale continues Orion’s strategy to focus on its pharmaceuticals and other healthcare products. Orion is listed on the Helsinki Stock Exchange.