Mexico City /
Betterware de México signed a definitive agreement to acquire 100 percent of the operations of Jafra in Mexico and the United States, of the Vorwerk Group, based in Germany.
In a statement sent to the Mexican Stock Exchange (BMV), it indicated that it is operation will be for a total consideration in cash of 255 million dollarssequivalent to 5 thousand 355 million pesos, acquiring the company with a balance sheet without debt and without cash.
“Betterware expects the acquisition to be highly additive from the first year.or (…) The acquisition will be through a combination of $225 million in debt financing and $30 million in available cash,” he said.
After the transaction, Betterware stated that it will continue to have a strong balance sheetwhich will allow the company to also invest to support its growth and continue paying its quarterly dividend of 9.38 pesos per share.
It was in the second quarter of last year that the company began preliminary discussions with Jafra that resulted in the signing of a non-binding LOI on July 15, 2021.
Since the signing of the LOI, the company has been limited in the exercise of the repurchase plan due to the material non-public information of this transaction.
“Is acquisition will expand our growth potential 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 thousand independent JAFRA consultants,” said Luis G. Campos, executive chairman of the Betterware board.
“The acquisition will also provide us with the opportunity to continue capitalizing on the strong trend of online direct selling and the significant opportunity for e-commerce we see for our business,” he added.
The company expects to close the transaction, subject to approval from Cofece, in the first half of 2022.