Jafra Cosmetics International
January 18, 2022
Betterware de Mexico said it signed a definitive agreement to buy 100 percent of JAFRA's operations in Mexico and the United States from Germany's Vorwerk Group for 255 million dollars in cash on a debt-free, cash-free basis. The price implied about 5.5 times estimated 2022 EBITDA before identified cost synergies of 5 million to 10 million dollars. Closing was expected in the first half of 2022, subject to antitrust and regulatory approval in Mexico.
JAFRA is a beauty and personal-care direct seller with about 443,000 independent leaders and consultants in Mexico and the United States and roughly 5.8 billion pesos in revenue. Betterware said the deal would expand it into beauty and personal care and give it critical mass in the United States, while JAFRA would continue as a separate subsidiary with its management team focused on growth. Financing was planned as about 225 million dollars of debt and 30 million dollars of cash.
Executive Chairman Luis G. Campos called JAFRA a strategic fit that would diversify categories and geography. Advisors included DD3 Capital Partners and Banco Santander.