White & Case and Kirkland steer €2.5bn deal for E45 maker

White & Case and Kirkland & Ellis are advising on KKR’s acquisition of Karo Healthcare from fellow private equity firm EQT, in a deal reportedly valuing the European consumer health business at over €2.5 billion.

Best known for skincare brand E45, Karo has expanded fast under EQT’s ownership - shifting from a Nordic pharma player to a pan-European consumer health giant with products now in over 90 countries.

Karo pulled in €530 million in revenue last year, and has made eight acquisitions since EQT took it private in 2022 at a valuation of around €1.4 billion, according to Bloomberg.

The deal comes despite a slower M&A market in the first part of the year.

For KKR, it’s a fresh move into European healthcare, backing a business it says has transformed under EQT and one it clearly sees more runway in.

Advising

White & Case is acting for EQT, with Stockholm and London-based private equity partner Patrik Erblad leading a cross-border team, including London partners Michael Weir and Michael Engel.

The firm also pulled in support from its Brussels and Frankfurt offices.

Kirkland is advising KKR, with corporate partners Alvaro Membrillera and Anna Van de Moortel leading, alongside debt finance duo Ian Barratt and Natasha Smith.

Barratt is one of Kirkland’s star players after his reported $20 million mega move from Simpson Thacher 18 months ago alongside Sinead O’Shea.

The ultimate prize for Kirkland was more European instructions from private equity powerhouse KKR which looks to be paying off.  

Recent mandates for Barratt and O’Shea acting for KKR include:

• Its £1.3 billion buyout of UK-based Smart Metering Systems (December 2023)
• Its investment in Swedish pharma firm Immedica (June 2024)
• Its acquisition of a majority stake in FGS Global from advertising giant WPP (August 2024)