01.19.22
Betterware de Mexico S.A.P.I. de C.V. has signed a definitive agreement to acquire 100% of Jafra’s operations in Mexico and the US from the Vorwerk Group of Germany for a total cash consideration of $255 million.
The transaction is expected to close in the first half of 2022, subject to antitrust and regulatory approval in Mexico.
Jafra, which was ranked No. 21 in Happi’s 2021 Top 50, has approximately 443K independent leaders and consultants selling products that include cosmetics, skincare and fragrances.
Founded in 1995, Betterware de Mexico is a leading direct-to-consumer company in Mexico; its portfolio includes home organization, kitchen, commuting and laundry and cleaning.
Betterware initiated preliminary conversations with Jafra during the second quarter of 2021 and signed a non-binding letter of intent (LOI) in mid July.
Betterware expects the acquisition to be highly accretive in the first year. The acquisition is expected to be funded through a combination of debt financing and existing cash on hand.
"We are excited to announce the acquisition of JAFRA and believe it represents a perfect strategic fit for Betterware. This acquisition will expand our growth potential as we extend our geographic reach to include North America, strengthen our positioning in Mexico and expand our categories served to include the beauty and personal care products,” said Luis G. Campos, executive chairman of Betterware's board of directors.
Campos said the company believes “significant growth opportunity lies ahead for Jafra through continuation of its digital transformation, “which will be accelerated by leveraging our scale and infrastructure.”
In addition to entering the beauty and personal care industry, Betterware says the acquisition provides a unique opportunity to expand its geographic footprint to the US, enhancing its international focus to the North American market.
The transaction is expected to close in the first half of 2022, subject to antitrust and regulatory approval in Mexico.
Jafra, which was ranked No. 21 in Happi’s 2021 Top 50, has approximately 443K independent leaders and consultants selling products that include cosmetics, skincare and fragrances.
Founded in 1995, Betterware de Mexico is a leading direct-to-consumer company in Mexico; its portfolio includes home organization, kitchen, commuting and laundry and cleaning.
Betterware initiated preliminary conversations with Jafra during the second quarter of 2021 and signed a non-binding letter of intent (LOI) in mid July.
Betterware expects the acquisition to be highly accretive in the first year. The acquisition is expected to be funded through a combination of debt financing and existing cash on hand.
"We are excited to announce the acquisition of JAFRA and believe it represents a perfect strategic fit for Betterware. This acquisition will expand our growth potential as we extend our geographic reach to include North America, strengthen our positioning in Mexico and expand our categories served to include the beauty and personal care products,” said Luis G. Campos, executive chairman of Betterware's board of directors.
Campos said the company believes “significant growth opportunity lies ahead for Jafra through continuation of its digital transformation, “which will be accelerated by leveraging our scale and infrastructure.”
In addition to entering the beauty and personal care industry, Betterware says the acquisition provides a unique opportunity to expand its geographic footprint to the US, enhancing its international focus to the North American market.