CVC sells Matas stake for $216m

The UK firm has now completed its exit from the Danish-listed business.

CVC Capital Partners has agreed to sell its remaining 19.4 percent stake in Matas, a Danish health and beauty retailer.

The firm agreed to sell up to 7,918,186 shares in Matas for DKK 150 per share, generating total proceeds of 1.18 billion Danish crowns (€160 million, $216 million), according to a statement.

It is unclear what CVC’s return was on the divestment, but the Matas shares were 30 percent higher than when CVC listed the business on the Copenhagen stock exchange in June. At the IPO, CVC sold a 37 percent stake in Matas, before reducing its stake to 27 percent in July.

In September the firm reduced its stake further when it sold an 11 percent stake to Kirkbi, a Nordic investment firm, together with its co-investors.

Matas has 293 stores in Denmark, of which 258 stores are owned and operated by Matas, while the remaining 35 stores are independently owned by store owners. Mates' product offering includes both international and Danish health and beauty brands, as well as its own brand products. The business has a workforce of approximately 2,400, according to CVC’s website.

CVC invested in the business in 2007 using its CVC European Equity Partners IV, a €6 billion, 2005-vintage. Fund IV was producing a 16.8 percent IRR and a 1.7x multiple, according to performance information from the California Public Employees’ Retirement System, PEI reported in July.

The firm is currently investing its latest fund, which reached its €10.5 billion hard-cap in July, having turned away some €3.5 billion of additional capital.