CataCap acquired 66 per cent of Luxplus
The private equity fund CataCap is partnering with the online membership club Luxplus, which sells beauty, health and care products at discount prices in the Nordic countries and several other European countries. CataCap is the majority shareholder in the company, whose revenue has increased by around 30 per cent per year during the last five years and today has 130,000 members and expected revenue of DKK 275 million in 2020. The company’s two founders will continue in the company and, together with CataCap, consolidate their strong market position in the Nordic region and further accelerate growth abroad.
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CataCap has acquired 66 per cent of Luxplus, which sells beauty, health and care products online in the Nordic region, the Netherlands, Germany and the UK. Founded in 2013 by entrepreneurs Martin Ersted Schultz and Peter Sønderby-Wagner, the company now has 130,000 members who pay a monthly subscription to access discount prices on hair care products, cosmetics, perfumes and other beauty products from more than 700 well-known brands.
”We’re very impressed with the innovative business model and platform that Martin and Peter have created. It truly has no borders and can be scaled up quickly, which they’ve already proved several times. The signficiant savings potential for members is evident from the growth that Luxplus is experiencing – in terms of both membership figures and revenue. We see enormous international potential in the company and look forward to further strengthening its position in the Nordic region and to making it the market leader in even more European countries within a clear time frame,” says Vilhelm Hahn-Petersen, partner in CataCap.
The growth journey must continue
While the total market for beauty, health and care products is stable and relatively unaffected by fluctuations in the economy, the online market for the same products is enjoying explosive growth. While the established players with physical stores have had to adapt to also included a digital presence, Luxplus entered the market directly in 2013 solely as an online business. They are currently market leading in online sales in Denmark and Sweden.
”We entered the beauty, health and care market with a clear vision of offering a wide and attractive product range at the lowest prices in the market. This was very well received and secured us a strong market position with high growth because we always know which products our customers want. Everything we do, including marketing, is digital and data-driven, so that we can optimise on an informed basis. This spring, we really started looking for a partner who could help us to further accelerate growth, strengthen the organisation and scale up internationally. We found this in CataCap,” says Martin Ersted Schultz, CEO and co-founder of Luxplus, who continues as CEO. He previously served as marketing manager for the Dating.dk dating portal.
The founder of Luxplus, Peter Sønderby-Wagner, who was behind Dating.dk and a number of other sites in the Freeway internet group, will continue in the role of Chief Concept Developer.
CataCap has been assisted by Bain & Co, Accura, EY and Intuitus as commercial, legal, financial and technical advisers, respectively. LuxPlus will be the fifth investment in CataCap’s second fund.
M&A adviser for Luxplus was Tofte & Company, while Bird & Bird and Deloitte assisted with legal and financial advice, respectively.
CataCap invests in SMEs that hold a significant development potential and have an innovative business model with long-term sustainability. CataCap’s business concept is to act as a catalyst for sustainable step changes through a systematic and consistent approach to strengthening business development, operational processes and leadership development in active interaction with management and employees of the portfolio companies. CataCap operates through an extended organisation in which CataCap’s own employees are supplemented by Operating Partners, Development Partners and Executive Advisors. The teams for each investment are recruited from this group.
CataCap is a proactive and dedicated owner. The systematic hands-on approach to developing CataCap’s businesses is intended to increase both the speed and sustainability of business step changes, thereby creating long-term value for all stakeholders as well as stable excess returns for investors. – www.catacap.dk
Luxplus ApS was established in 2013 and is a Danish company. Luxplus is a new and unique concept for members only. As a member, you can save up to 80 per cent on everything from exclusive brands to well-known everyday products. Today, members in Denmark, Sweden, Finland, the Netherlands, Germany and the UK enjoy the many membership benefits, and we look forward to opening in even more countries. Luxplus always offers free delivery to your doorstep – whatever the size of the order. – www.luxplus.dk