The acquisition is part of Douglas’ drive to become the largest perfume retailer in Europe. Gaining control of Nocibe puts the company in second ranking position and leaves it poised to catch up with rival Sephora.
CEO Henning Kreke commented at the news conference that Douglas wanted to extend its growth through acquisitions of other, smaller companies, particularly in Germany. Earlier this year, Kreke noted that perfumery was already Douglas’ most profitable division.
A spokesperson from Douglas commented to CosmeticsDesign-Europe.com: "Apart from Nocibé, Douglas is also interested in smaller perfumeries, especially in Germany, for example family owned businesses. As part of its corporate strategy, Douglas will continue to successfully expand its position in Europe."
"In financial year 2012/2013, the Douglas perfumeries developed well and increased its sales, especially in the online shops."
"Douglas and Nocibé are already today among the leading players and rank fourth and third in the French perfumery market. The acquisition of Nocibé by the DOUGLAS Group would create the largest perfumery chain in France...Together, Douglas and Nocibé would achieve a number two position in terms of turnover."
Acquiring Nocibe
The acquisition of the Nocibe chain is expected to add 625 stores and 4,000 employees to Douglas’ footprint, making the firm the 2nd largest retailer of perfume in France in terms of revenue.
The company has plans to invest as much as €500m in capital in improving their perfumery division. Acquiring Nocibe marks a significant step towards the Douglas’ goal of rebranding themselves as the “epitome of beauty” in Europe and surrounding regions.
Nocibe had a market value of €500m in 2012, whilst Douglas had total sales of €680m in the same year. The company will complete the deal in 2014, as soon as it has gained approval from “French cartel authorities and labour representatives.”
Spokespeople from the company commented: "The planned Nocibé transaction would represent a major milestone in the successful implementation of the joint growth strategy of the Kreke family and Advent International as DOUGLAS' shareholders."
"The two companies both are selective perfumery chains. Customers in France would benefit nation-wide from significantly expanded and more attractive ranges of products and services, including a large variety of exclusive fragrances, cosmetic products and beautician boutiques."