The private equity house is working with advisers at Rothschild & Co to prepare the initial public offering (IPO), which could happen as early as next year, said the people, asking not to be identified because the discussions are private.

The potential IPO could value Douglas at up to 7 billion euros ($7.68 billion), one of them said.

The news comes as IPO markets in Europe and the United States are starting to warm up after a long drought caused by the impact of rocketing interest rates and Russia's invasion of Ukraine.

German companies are gearing up for a revival in stock offerings, with medical glassmaker Schott Pharma, road payments group DKV Mobility, midsize lender OLB Bank and defence contractor Renk all eyeing market debuts in the latter part of the year.

Some have set their sights overseas, such as sandal maker Birkenstock, which is planning to list in New York.

CVC acquired Douglas in 2015 from rival buyout firm Advent International in a deal worth almost 3 billion euros at the time.

Reuters reported in early 2020 that the private equity house was exploring a sale or IPO of the beauty group, but the plans never materialised as COVID-19 spread across the world.

Bloomberg was first to report on CVC's plans for Douglas earlier on Wednesday.

($1 = 0.9110 euros)

(Reporting by Matthias Inverardi in Duesseldorf and Pablo Mayo Cerqueiro in London; Editing by Elisa Martinuzzi and Jane Merriman)