German retailer Douglas Holding to recommend $2-bn takeover offer from Advent International

Germany's Douglas Holding AG yesterday said that its board has decided to recommend a €1.5-billion ($2 billion) takeover offer from private equity firm Advent International and the Kreke family, founder of the loss-making perfume-to-books retailer.

''Following a thorough review, both boards recommend the shareholders of Douglas Holding AG to accept the voluntary public takeover offer published on 31 October 2012 by Beauty Holding Three AG, a subsidiary of the financial investor Advent International,'' the Hagen-based company said in a statement.

In October, Advent and The Kreke family, through their newly established investment vehicle Beauty Holding, offered to buy Douglas Holding for €38 per share, a premium of 9.2 per cent, valuing the company at €1.5 billion. (See: Kreke family, Advent International to buy German retailer Douglas Holding for $2 bn)

Douglas Holding CEO Henning Kreke and his family, who own 12.7-per cent stake in the company, had told shareholders in March that he would like to take Douglas Holding private in partnership with a private equity investor.

Both Advent and the Kreke family said that Beauty Holding has already received acceptance of 50.5 per cent of the share capital of Douglas Holding, but the offer is conditional on receiving 75 per cent acceptance.

The Oetker family, one of the richest families in Germany that owns Dr. Oetker and the largest shareholder in Douglas Holding with a 25.8-per cent stake, and Erwin Mueller with 10.7 per cent, had agreed to tender their shares to the offer.