German-based Vorwerk is to acquire Jafra Cosmetics International from Clayton, Dubilier & Rice (CD&R), which owns 84% of the direct selling cosmetics company. Terms of the deal are undisclosed. CD&R led the $200m acquisition of Jafra Cosmetics from The Gillette Company in April 1998.
Jafra Cosmetics is a direct seller of premium skin care products, colour cosmetics, body care products, fragrances and other personal care products. The company markets its products through a multi-level direct selling distribution system comprising over 300,000 independent sales representatives operating directly in 12 countries in the Americas and Europe and through distributors in nine other countries.
Thomas Ireland, a CD&R operating partner, said: “Our investment in Jafra is an example of how CD&R successfully acquires global businesses that are part of larger corporate multinationals and then works closely with management to create stronger and more profitable stand-alone businesses.”
The transaction is subject to regulatory approvals and is expected to close in Q2 2004.