Apax Partners, the London-based buy-out firm, has acquired a 49% stake in an unlisted German cosmetics firm. An adviser on the deal said it could open the way for up to 20 similar acquisitions of such mid-market businesses next year.

The acquisition of LR-International Cosmetic & Marketing is a rare example of a buy-out house taking a stake in a family-owned middle-market company, known collectively as the Mittelstand.