Mexican household products business Betterware has announced the acquisition of Jafra Cosmetics’ operations in the US and Mexico from its parent company, Vorwerk Corporation.
The deal, expected to close in the first half of 2022, subject to antitrust and regulatory approval in Mexico, will be funded through a combination of $225 million in debt and 30 million dollars in cash.
The acquisition will allow Betterware to further diversify its existing operations by category to include beauty and personal care products, and by geography, particularly in the US market.
Currently, Betterware’s product portfolio includes home organization, kitchen, travel, laundry and cleaning, as well as other categories that include products and solutions for every nook and cranny of the home. Similar to Jafra, they use a consulting sales force to sell their products.
Going forward, Betterware aims to enhance Jafra’s revenue growth and profit potential through the adoption of Jafra’s infrastructure and operating methods. It also plans to accelerate its digital transformation by leveraging Betterware’s omnichannel capabilities to capitalize on e-commerce opportunities in Mexico and the US.
“We are delighted to announce the acquisition of Jafra and believe it represents a perfect strategic fit for Betterware,” said Luis G. Campos, executive chairman of the board of Betterware.
“We believe significant growth opportunities lie ahead for Jafra through furthering their digital transformation, which will be accelerated by leveraging their scale and infrastructure. me, and we look forward to welcoming the entire Jafra team to our company.”
Jafra has a proven track record and a profitable business model with high cash flow generation and over 65 years of experience in direct selling. Jafra will operate as a separate subsidiary with its management team remaining focused on its operations and growth strategy.
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