The Industri Kapital 1997 Fund sold its remaining 4.5% at a price of €26 per Swedish Depository Receipts (SDRs), ending an investment that began in October 1999 when the mid-market buyout firm delisted the company from the London Stock Exchange. This latest share sale means the investment has generated a 50% IRR for the fund.
At the time of the IPO, it was the fist listing in Sweden for 18 months and earned Industri Kapital €225m, a 5.8x return on its original investment. It floated at the top end of the price range at SEK190 giving it a market capitalisation of SEK11.275m (€1.2m).
Industri Kapital paid €90m for a 39% stake in the company in 1999, and reduced this stake to 16% at the time of the IPO on the Stockholm Exchange’s O-List. It reduced this to 11.8% in February this year when it sold 2.5 million SDRs at a price of SEK235 (€25) per share, and cut it again to 4.5% in May at a price of SEK280 (€30) per share.
Oriflame is a manufacturer of high quality skin care, fragrances and colour cosmetics. Its products are marketed through a sales force of over 1.6m independent sales consultants. It is present in 57 countries and is one of the market leaders in over 30 countries, and last year generated sales of €766m.