Cosmetics retailer Douglas is preparing for an initial public offering (IPO) on the Frankfurt Stock Exchange. The company operates in more than 20 European countries and is 85% owned by PE firm CVC.

As part of this move, Douglas plans to offer EUR 800 million worth of new shares to external investors. In addition, existing shareholders, including CVC, will inject EUR 300 million into the company as part of the IPO. The funds raised will be used to reduce debt, while the remaining loans will be refinanced on better terms. Douglas is seeking a valuation of about €7 billion.

Headquartered in Düsseldorf, Douglas operates in 22 countries and is strengthening its presence in online stores across Europe. Its focus on higher-end beauty products could attract investors looking for exposure in this market segment. The company, which has more than 1,800 stores, had net sales of €4 billion and profits of €725 million in the financial year to the end of September. Net debt was €3.4 billion.

CVC bought an 85% stake in Douglas from Advent International and the founding Kreke family in 2015 for about €2.8 billion.