Betterware Mexico acquires Jafra’s operations in North America for $255 million. photo file
Betterware Mexico, a direct sales company for home solutions by catalog, announced the acquisition of the operations of the Jafra company in Mexico and the United States, for a total of 255 million dollars or around three thousand 555 million pesos.
The Mexican company expects to close the acquisition of Jafra, owned by the German corporation Grupo Vorwerk, in the first half of the year, when it receives authorization from the Federal Economic Competition Commission.
“The purchase price implies a valuation multiple of ~5.5x 2022E Enterprise Value to EBITDA before identified cost synergies of between US$5mm and US$10mm, and 4.8x 2022E Enterprise Value to EBITDA considering the midpoint of the synergies,” said the company, in a statement sent to the Mexican Stock Exchange.
The payment will be made through a combination of debt (225 million dollars) and cash payment (30 million dollars), which will allow it to maintain low leverage and continue to pay a quarterly dividend of 9.38 pesos per share.
“We are excited to announce the acquisition of Jafra and believe it aligns perfectly with Betterware’s strategy. This acquisition will expand our growth potential by allowing us to expand our geographic presence to include North America, strengthen our position in Mexico and expand our categories to include Beauty and Personal Care products With the addition of [443 mil] independent consultants of Jafra, the acquisition will also provide us with the opportunity to continue capitalizing on the strong trend of online direct selling and the important e-commerce opportunity that we see for our business”, said Luis G. Campos, executive chairman of the board of Jafra. Betterware, in a statement. “We believe that Jafra has significant growth potential ahead through its digital transformation, which will be accelerated by leveraging our scale and infrastructure.”
Publication date: 01/18/2022
Tags: Betterware acquisition Jafra Mexico USA