Brittany, France-based Groupe Rocher has entered into a definitive agreement to acquire Arbonne International, a Irvine, California-based seller of botanically based beauty, personal care and nutrition products. The acquisition will complement and expand Groupe Rocher’s portfolio of strong brands and fulfill its growth objectives, particularly outside the European area.
Also part of the acquisition is Nature’s Gate, the personal-care brand of Arbonne’s holding company, Natural Products Group (NPG).
“This acquisition will be a real asset that will enable us to strengthen our positioning in the direct selling channel, which has seen an upturn over the past few years,” said Bris Rocher, CEO of Groupe Rocher. “We also have a heritage of providing employment opportunities, dating back to my grandfather, our founder Yves Rocher, who cared deeply about providing employment since he started his business. This, combined with our direct selling know-how, should foster company growth and longevity.”
Groupe Rocher is an independent family-run group, with more than 99 percent owned by the founder’s family. With a philosophy of “creative entrepreneurship” and original positioning (producer, harvester, manufacturer and distributor), Groupe Rocher sales from its nine brands dedicated to women’s beauty and well-being—Yves Rocher, Petit Bateau, Stanhome, Dr. Pierre Ricaud, Daniel Jouvance, Kiotis, ID Parfums, Flormar and Sabon—amounted to more than €2 billion euro in 2017.
With a production site and four integrated distribution sites, Arbonne is a global business with sales revenue in excess of US$550 million (€450 million). Founded in Switzerland in 1975 and brought to the U.S. in 1980, Arbonne was created to fulfill the vision of Founder Petter Mørck to develop botanically based skincare, cosmetics and nutrition products that are better for both consumers and the planet, while also providing an opportunity for people to become financially independent by joining a direct selling network. Today, approximately 800 employees and more that 250,000 active independent consultants contribute to the success of the Arbonne brand, whose products are sold in the United States, Canada, United Kingdom, Australia, New Zealand, Taiwan and Poland.
“We share with Groupe Rocher commitments to pure, botanically based products and sustainability, as well as a long-term business vision that is grounded in family values,” said Kay Zanotti, CEO of Arbonne. “We are particularly pleased with Groupe Rocher’s keen appreciation of the many benefits of the direct selling model in providing flexible income opportunities, and a positive community of professional growth for individuals.”
With the recent investment in the digitization of its direct selling network, Arbonne can help Groupe Rocher enhance the direct selling model. Arbonne has implemented a state-of-the-art IT platform that will facilitate the move from traditional direct selling to social selling.
This pending acquisition, the value of which has not been released, will round off the portfolio of Groupe Rocher brands. The company has been able to reposition its business over time due to its decisions regarding distribution channels and its commitments as an integrated company.