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Advising the founders of L.A.B. Cosmetics on the company’s sale to Oakley Capital/WindStar

Allen & Overy has advised the founders of L.A.B. Cosmetics GmbH & Co. KG (L.A.B.), a leading provider of ‘clean beauty’ products, both on the sale of the company to WindStar Medical GmbH (WindStar), a portfolio company of the private equity investor Oakley Capital, and on the founders’ reinvestment in the WindStar platform.

Based in Hamburg, Germany, L.A.B. specialises in the development, fulfilment and marketing of ‘clean beauty’ cosmetics that are free from harmful chemicals, selling its fast-growing flagship brands DAYTOX and BEAUTY GLAM via leading European retailers as well as via online direct-to-consumer (‘D2C’) channels and marketplaces.

WindStar is Germany’s leading over-the-counter (‘OTC’) consumer healthcare company which designs, develops and commercialises branded consumer health and private label products, with a track record of establishing best-in-class medical formulations and brands. Oakley first invested in the business in October 2020 to support the company’s growth strategy and scale the business through continued product innovation, digitalisation, and accretive acquisitions.

Partnering with L.A.B. will enable WindStar to enter the highly attractive clean beauty segment, which is forecast to outgrow the USD 450 billion global beauty and personal care market through 2025. L.A.B.’s revenues are expected to more than double in 2021, with strong demand for its innovative, science-led products which are free from additives and are PETA and vegan-approved.

Karin Hock and Slobodan Vucinic who founded L.A.B. in 1998 will roll a significant portion of their proceeds into the WindStar platform and will continue to lead L.A.B. as joint Managing Directors. The parties have agreed not to disclose the terms of sale.

The Allen & Overy team comprised partner Dr Hans Schoneweg and counsel Marie-Luise von Buchwaldt (both Corporate/M&A, Hamburg), as well as partner Dr Michael Ehret (Tax) and counsel Dr Sebastian Schulz (Employment & Benefits, both Frankfurt). Also involved were associates Daniel Wendler, Dr Jan-Benedikt Fischer (both Corporate/M&A, Hamburg) and Dr Manuel Köchel (Tax, Frankfurt).