Charterhouse nets more than 2.5x on Deb Group

The exit comes as the London-based firm aims to collect €3bn for its Fund X

Charterhouse Capital Partners has reached an agreement to sell its stake in skincare company Deb Group to SC Johnson, a manufacturer of household products.

Financial details of the transaction were undisclosed, but the firm will net a return of more than 2.5x on the sale, according to a source familiar with the deal.

Charterhouse declined to comment.

Deb provides skincare products for all types of workplace and public environments, spanning industrial, commercial, healthcare and food sectors. Deb is comprised of 21 subsidiary companies operating in 16 countries, with products sold in over 100 countries.

Since investing in Deb in 2010, the company opened a new manufacturing and warehousing facility in Australia. It also established a commercial presence in South East Asia. The company also launched Deb Med hand hygiene monitoring business in North America. In 2014 Deb acquired Stoko Professional Skin Care, a skin protection brand. Since the investment in 2010, Deb’s workforce has increased by more than 20 percent, while revenues have almost doubled, according to a Charterhouse statement.

Charterhouse initially made the investment using capital from Charterhouse Capital Partners IX, a €4 billion vehicle, is currently valued at 1.8x, representing an internal rate of return of 27 percent, it is understood. Following the sale of Deb, CCP IX will have delivered almost a 3x return across the four realised exits to date.

Last week, Charterhouse secured a partial exit by selling a further 40 million shares of Card Factory, a UK retailer that sells greeting cards. Last July, Charterhouse sold Bureau Van Dijk, a business and financial publisher specialising in private company information, to EQT, while in July 2012, it sold its stake in energy and metal industries research company Wood Mackenzie in a secondary sale to Hellmann & Friedman.

The firm will be keen to return cash to investors as it is currently in market raising Charterhouse Capital Partners X with a target of approximately €3 billion, sources with knowledge of the matter told PEI recently.