Oriflame Cosmetics S.A. is expanding its operations into East Africa by acquiring the businesses in Kenya, Tanzania and Uganda previously run by a franchisee.
The acquisition is in line with Oriflame's strategy of further expanding its geographical footprint in global growth areas by making inroads into Sub-Saharan Africa.
"After very encouraging experiences and success in Oriflame's present North Africa business, we are expanding our market presence by acquiring our franchisee operations in East Africa. We have a long term commitment to develop the direct sales of cosmetics on the African continent and look forward to continued success in this region", CEO Magnus Brännström comments.
The operations will be run in three separate legal entities managed from Kenya. The acquisition was concluded on 29 May 2012 and the legal entities will be part of the EMEA region as from the second quarter 2012. The acquired entities are not expected to have a material impact on the group's financial statements of 2012. Oriflame and the counterpart have agreed to keep the details of the acquisition confidential.
For additional information, please contact:
Joakim Banestig, Senior Director IR, Oriflame +41 79 103 35 21
Johanna Palm, Senior Manager IR, Oriflame +46 76 542 26 72
Founded in 1967 by two brothers and their friend, Oriflame is now an international beauty company selling direct in more than 60 countries worldwide. Its wide portfolio of Swedish, nature-inspired, innovative beauty products are marketed through a sales force of approximately 3.6 million independent Oriflame Consultants, who together create annual sales of around EUR1.5 billion. Oriflame offers the leading business opportunity for people who want to start making money on day one and work towards fulfilling their personal dreams and ambitions through its unique business opportunity concept - Make Money Today and Fulfil Your Dreams Tomorrow(TM). Respect for people and nature underlies the company's operating principles and is reflected in its social and environmental policies. Oriflame supports numerous charities worldwide and is a Co-founder of the World Childhood Foundation. Oriflame Cosmetics is listed on the Nasdaq OMX Nordic Exchange.