US private equity firm L Catterton has acquired a majority stake in the personal care brand Stenders, investing a total of $200 million over the past 12 months. This investment comes as the premium bath and body market in China has seen significant growth, expanding at an annual rate of 14%. Stenders, which was founded in 2001 in Latvia, has also reported impressive sales growth, with a 20% increase in its sales annually. The investment is part of L Catterton's broader strategy to capitalize on the booming consumer market in China, which is expected to benefit from approximately $20 trillion in household savings that could further boost consumption [e3ab927e].
In 2023, L Catterton's portfolio companies experienced a remarkable 60% increase in sales and a 140% rise in profits, underscoring the firm's successful investment strategy in the region. Scott Chen, a representative from L Catterton, emphasized the importance of differentiated offerings and maintaining a loyal customer base as key factors for success in the competitive market [e3ab927e].
The founders of Stenders, Yang Gang and Zhao Yang, will retain a minority stake in the company following the sale, allowing them to continue influencing the brand's direction while benefiting from L Catterton's extensive resources and market expertise [e3ab927e]. This acquisition reflects a growing trend among private equity firms to invest in consumer brands that cater to the evolving preferences of Chinese consumers, particularly in the premium product segment [e3ab927e].