About the company
Flynn Restaurant Group (“FRG”) is the largest franchise operator and one of the 20 largest food service companies in the USA. Its wholly-owned brands include Taco Bell, Panera Bread, Arby’s and Applebee’s restaurants.
Investment rationale
- FRG has c.2,355 stores in the USA that generate c.US$3.7bn in annual revenues and employ c.73,000 people. In 2021, FRG was a part of the largest franchise transaction in American history when it purchased 937 Pizza Hut restaurants and 194 Wendy’s stores for c.US$553m.
- PIP was offered an opportunity to invest alongside Main Post, a sector-focused sponsor with a strong investment track record.
About the company
Launched in 2014, Olaplex is a fast-growing independent haircare brand with patent-protected products backed by science. It offers a suite of products that use its technologically proven “bond–building” (repairing, strengthening and protecting hair bonds) formula. The company is the number one bond-building brand in the professional channel and a top ranked global brand in specialty retail.
Investment rationale
- Strong financial performance, with a 90% increase in net sales from 2019 to 2020.
- In 2020, Olaplex was the number one haircare brand at Sephora (a popular retailer for beauty products) based on sales, and five of its products were the bestselling ones in their respective categories at Beauty Systems Group (one of the leading distributors globally for professional/salon use haircare products).
- Large and growing global haircare market, particularly for products treating damaged hair.
- Significant product line extension opportunities and expansion of addressable market through patented technology and e-commerce.
Our relationship
- Pantheon has a well-established relationship with Advent International Group (“Advent”), dating back to 1998, and PIP is a primary investor in six Advent funds. Pantheon also holds an advisory board seat for various Advent funds.
Active management and value creation
During the investment period, Advent has worked with Olaplex to:
- Strengthen its internal R&D team and successfully launch six new products (No. 0 Intensive Bond-Building Pre-Treatment in July 2020, No. 8 Bond Intense Moisture Mask in April 2021, No. 4-1 Moisture Mask in July 2021, No. 4P Blonde Enhancer Toning Shampoo in September 2021, No. 9 Bond Protector Nourishing Hair Serum in March 2022, and No. 4C Bond Maintenance Clarifying Shampoo in June 2022).
- Expand into international markets and evaluate new market opportunities.
- Navigate the business through the pandemic. Advent was able to use the digital expertise within its team to switch to an online sales-led strategy during the COVID-19 lockdowns when salons were closed. This enabled Olaplex to continue operating through the pandemic, and direct to consumer sales, which include Olaplex.com and sales through third-party eCommerce platforms, now account for 24% of its net sales as at March 2022.
Since the IPO of Olaplex in September 2021, Advent remains an active shareholder with three seats on Olaplex’s board of directors and continues to use its sector expertise and resources to support the company.
About the company
Nexi is the leading player in card and payment services in Italy. The company serves the majority of Italian financial institutions, as well as corporate and public sector clients, thereby representing a mission-critical component of Italy’s financial infrastructure.
Nexi operates in three areas: Merchant Services & Solutions, Cards & Digital Payments and Digital Banking Solutions.
The company operates in strong partnership with c.150 banks, serving 900,000 merchants and managing 42 million payment cards for 30 million cardholders.
The investment rationale
Clessidra invested in Nexi (formerly ICBPI) as part of a consortium that included Advent International and Bain Capital. In addition to a structural shift towards card payments and significant opportunities for operational improvement and M&A, the deal sponsors’ track record in the payment processing sector and their history of collaboration in a number of successful investments was a key consideration when entering into this transaction.
Our relationship
Pantheon has invested in Clessidra and Advent International on a primary basis for several years and holds a seat on their respective Advisory Boards.