By Philip Stafford.
24 November 2003 Financial Times

(c) 2003 The Financial Times Limited. All rights reserved Duke Street Capital yesterday acquired Accantia, maker of top-selling tampon brand Lil-lets and the Simple skin care and toiletry products range, from ABN Amro Capital in a £225m deal.

Duke Street, the UK private equity group, earlier this year approached ABN’s private equity unit to buy the Birmingham-based company. It intends to provide the business with further financial and operational support.

Geoff Percy, chief executive of Accantia, said the new owners would provide the backing needed to take the business on to the next stage of its development.

"The first stage was untangling the business. The second stage requires a material increase in advertising and promotion investment," Mr Percy said.

Tim Lebus, director of Duke Street, said Accantia had one of the most experienced management teams in the sector. He expects Accantia to achieve "significant growth" and provide a "good return".

The sale is likely to generate a strong return for ABN Amro Capital, which bought the business for £140m in June 2000 as part of a management buy-out from medical products maker Smith & Nephew.

Accantia had revenues of £96m in year to December 2002, up 9 per cent from 2001, and the group expects to meet or exceed its sales expectations for the current financial year. The deal is also the first large exit from a leveraged buy-out for ABN Amro Capital since its formation in 1999.

Bank of Scotland Corporate Banking was the lead arranger and underwriter. Duke Street was advised by McQueen.