Nocibé
| Location: | Deal size: |
|---|---|
| France | N/D |
From its origins as a family business, the French perfumery and cosmetics retailer Nocibé had become the market number two when Bridgepoint acquired it from its parent Kruidvat, the Dutch retail chain, in October 2002 in a transaction totalling €302 million.
From the outset, Bridgepoint identified a number of operational improvement and growth initiatives with the management team, designed to enhance overall company performance, and profitability in particular. These ranged from better sourcing of manufacturers’ offers as well as more efficient management of stock levels and improved supplier terms. This not only improved Nocibé's working capital but allowed it to increase margins whilst remaining competitive in the eyes of its customers.
Similarly, initiatives were undertaken on the marketing front to protect and expand the client base, by introducing more attractive offers which resulted in increased customer sales by number and value. Customer in-store experience and store environments were also enhanced through a refurbishment programme which took in improved point of sale designs and more distinctive materials accompanied by more in-store promotions and events.
Although Nocibé, with its network of over 236 owned and 60 franchised stores, had been one of the principal consolidators of the French perfumery market in the 90’s, it had not fully integrated those acquisitions and its estate therefore lacked any uniformity. Integration of the different entities into the group was therefore one of the primary tasks when Bridgepoint acquired it whilst also supporting further selective acquisition and store roll out, especially in those areas where Nocibé was underrepresented. This was the case with the acquisition in 2005 of Euro Santé Beauté. The latter allowed Nocibé to position itself in the ‘parapharmacy’ market as well as to increase its profile in the Paris market.
Under Bridgepoint ownership, the company increased revenues by 30% and the number of owned stores rose by more than 25%. In December 2005, Nocibé was acquired by Charterhouse Capital for an undisclosed sum which saw Bridgepoint achieve almost three times its initial investment. Nocibé is a good example of active ownership in practice and of how by working with management true value creation can be achieved.