FX.co ★ Mikhail Fridman fund to buy Holland & Barrett

Investment fund of Russian billionaire Mikhail Fridman agreed to buy British Holland & Barret. In a £1.8 billion ($2.3 billion) deal with Carlyle Group, Fridman will acquire one of the largest health foods retailers in Europe.

Holland & Barret has over 2,000 stores, half of which are located in Britain. It also has presence in China, India, the Netherlands and United Arab Emirates.

The deal is expected to close in September. This is the first acquisition of L1 Retail, which belongs to Fridman’s holding company LetterOne. Advisers from major UK retailers are among the fund’s staff. They help it orient itself on the European market.

US-based KKR, private equity firm Sycamore Partners and Hong Kong’s AS Watson were among potential buyers of Holland & Barrett and closely followed the auction process.

The health foods and vitamins chain posted revenues of £610 million last year and earnings before interest, tax, depreciation and amortization of more than £150 million.