Consumer-focused private equity firm L Catterton has acquired a controlling stake in Latvian bath and body care firm Stenders from investors based in China, according to an announcement on Tuesday.
The Latvian company was bought by two Chinese businessmen and Beijing-based state-owned investment bank CICC in 2018. Following L Catterton’s investment, the two businessmen Yang Gang and Zhao Yang, will continue to hold a significant stake in the brand, the statement said.
The investment will help Stenders step up its international expansion across Asia, Europe, the Middle East, and the US, according to the company statement.
Financial terms of the deal remain undisclosed.
China is Stenders’s largest market. The retailer first entered the market in 2007 after Gang and Yang, who are also co-CEOs of the Latvian company, introduced the brand with its first franchise in the country.
The deal marks L Catterton’s fourth investment in China over the last 12 months. It has also invested in plant-based beverage company Viee, personal care company Hi!Papa, and synthetic human collagen developer Trautec.
Stenders, a national brand founded in 2001 known for its all-natural bath and body care products, operates 300 stores in 20 countries around the world. Their products range from bath bombs, foams, and salts, to body butter, creams, lotions, oils, scrubs, and yoghurts; as well as hand creams and lotions.
China’s high-end bath and body care market has grown at an annual rate of 14% over the past six years and is expected to reach a market size of nearly 10 billion yuan ($1.4 billion) in 2028, according to industry figures cited in the announcement.
Some of L Catterton’s investments in the beauty and personal care sector in Asia include Japanese brands Ci FLAVORS and ETVOS, Indian beauty brand SUGAR Cosmetics, and China’s Marubi, Hi!Papa, and Trautec.
L Catterton managed approximately $35 billion of equity capital across private equity, credit, and real estate. The firm has made more than 275 investments in leading consumer brands globally.
