Following the acquisition, the Mexican firm, which specializes in online domestic product distribution, will expand its product categories to include cosmetics and personal care.
Betterware is expanding its product line. The Mexican firm, which specializes in the online selling of household goods, has purchased 100% of Jafra Cosmetics in the United States. The deal was estimated to be worth 255 million dollars. Until now, Jafra Cosmetics was owned by Vorwerk, the German company that also owns Thermomix.
Negotiations for the deal began in the second quarter of 2021. The transaction is expected to finalize in the first part of the year, according to the Mexican company, which is listed on the New York Stock Exchange.
In a statement, Luis G. Campos, chairman of Betterware's board of directors, said, "This acquisition will expand our growth potential by extending our geographic reach into North America and strengthening our positioning in Mexico, as well as broadening our categories to include cosmetics and personal care products."
Both companies will be managed as separate businesses following the acquisition, according to a statement from the corporation. Jafra Cosmetics will be expanded by Betterware in Mexico and the United States.
"The transaction will allow us to continue to capitalize on digital market trends and drive Jafra Cosmetics' expansion, leveraging our online infrastructure to assure its long-term profitability," G. Campos said.
In 1956, Jafra Cosmetics was established. The company is established in California and has been a part of the German Vorwerk group since 2004. It specializes in the direct sale of cosmetics. Although the company's business and production are mostly focused on the Mexican market, it sells its products globally.
Betterware is a company that specializes in the online distribution of household products. It was formed in 1995. The company now operates in Mexico and Guatemala, with intentions to expand into new areas in the near future.
La mexicana Betterware se hace con Jafra Cosmetics por 255 millones de dólares | Modaes.es: