360 CORPORATE advises Bodybell on the transaction. MADRID - Mercapital has succumbed to the scent of Bodybell. The perfumery and personal care products chain controlled by N+1 and its quoted vehicle Dinamia has incorporated as shareholder the private equity firm led by Javier Loizaga, with the acquisition, in the form of a capital increase, of a 49% stake for €58 million. As the acquirer explained yesterday, the investment fits with the group's strategy of "opening new stores and acquiring other perfumery chains with the support of its financial partners." According to its shareholders, which include the group's founders and the management team, the market remains attractive and has potential for modernization and continued growth in all product categories, in spite of the current economic crisis. Juteco Founded 30 years ago by a group of sector professionals, Bodybell opened its share capital to financial investors led by N+1 Private Equity in 2005. In June of last year, Bodybell acquired its rival Juteco, thereby creating the leading independent chain of modern perfumeries in Spain. With sales of around €300 million, Bodybell boasts a platform of 240 stores throughout Spain, well-known brands, an extensive offering of perfumes and cosmetics with over 15,000 references, and a workforce of over 1,900 employees. The activities of the group presided by Lorenzo Martínez comprise retail sales of premium and mass-market beauty products, personal and homecare products as well as parapharmacy products. "The current slowdown will increase opportunities to acquire retail chains at reasonable prices in the sector, which will tend to consolidate," according to sources at Bodybell, where Mercapital and N+1 will share control equally. In spite of declining consumer spending in Spain, the chain is maintaining its budget for sales, new store openings and EBITDA, which will reach around €39.5 million this year. According to Dinamia's latest valuation report as of 30 June filed with the Comisión Nacional del Mercado de Valores (CNMV), net debt is €280 million. According to market sources, Mercapital has valued Bodybell at between 8 and 9 times annual EBITDA. The corporate finance firm Optima Corporate, the law firm Clifford Chance, KPMG and BCG advised Mercapital on the transaction, while 360 CORPORATE and Linklaters advised Bodybell and its shareholders. For Mercapital, which owns shares of the upscale health clubs operator Holmes Place together with N+1 and Dinamia, this investment is its third in less than a year, following Mercapital's investments in the computer technology outsourcing company Arsys and in the civil works contractor Ossa. Moreover, the Spanish company that manages €1,400 million in funds has an outstanding €500 million offer for the dental clinics operator Vital Dent jointly with Merrill Lynch. In turn, N+1's portfolio includes MBA, Xanit, Bestin, High Tech Hotels, Segur Ibérica and Serventa, amongst other companies.