Health and beauty products distributor LR Health targets Q4 IPO -sources

By Arno Schuetze

FRANKFURT, July 28 (Reuters) - Germany's LR Health & Beauty is preparing for a Frankfurt stock market flotation in the fourth quarter as its private equity owner seeks to take advantage of high equity valuations and monetize part of its holdings, people close to the matter said.

LR Health & Beauty is a direct sales enterprise, offering more than 300 nutritional supplements and cosmetics products with its customers getting discounts and provisions on orders if they agree to act as sales agents.

The company could be valued at more than 500 million euros ($591 million) in a potential initial public offering, the people said, adding that no decisions have been taken.

LR Health & Beauty's owner, buyout firm Quadriga Capital, is working with Jefferies and Berenberg on the deal, they said.

Quadriga and the banks declined to comment, while LR Health & Beauty was not immediately available for comment.

The company, founded in 1985, last year generated adjusted earnings before interest, tax, depreciation and amortization of 42.5 million on sales of 285 million euros. In the first quarter of 2021, sales rose by 15%, while core earnings jumped 40%.

LR Health & Beauty is present in 29 countries and has 1,200 employees as well as thousands of what it calls sales partners. ($1 = 0.8455 euros) (Reporting by Arno Schuetze; Editing by Emelia Sithole-Matarise)