Oriflame, with the support of the af Jochnick family and investors representing more than 80 percent of its bonds, announced a comprehensive recapitalization. With this move, Oriflame secures substantial debt reduction and allows for strategic investments that will fund the next stage of growth.
This transaction infuses new capital of $54 million and creates a substantially de-levered and sustainable balance sheet with a debt reduction of $569 million. The af Jochnick family will remain the main shareholder of the company, meaning the shareholding structure of the group will not change.
“Our family has been involved in Oriflame since Oriflame’s founding in 1967,” said Alexander af Jochnick, Oriflame Chairman. “Today’s announcement of our investment in partnership with a group of investors as well as the recapitalization of the balance sheet provides Oriflame with a stable financial footing. This will allow for the management team to execute on the company’s business plan to the benefit of all stakeholders of Oriflame. I am excited to work together with the investors and management to enable the success of our brand partners across the world!”
The transaction is expected to close during the first half of 2025, with Oriflame’s ongoing transformation already delivering early results. Key operational metrics are showing positive momentum and year-to-date, Oriflame Community Members increased year-over-year for the first time since early 2021.
Tresidor Investment Management and Blantyre Capital said in a joint statement: “We are delighted to support Oriflame and its community of dedicated entrepreneurs with a major de-leveraging of the company’s balance sheet together with a strategic investment of additional capital to support growth. This investment will be instrumental in accelerating the implementation of the company’s strategic plan which is already delivering performance improvements. We are firm believers in the strength of the Oriflame’s beauty community and the long-standing premium quality of its products and are excited to be a part of the company’s future growth. We look forward to continuing to work collaboratively with Oriflame’s talented team and experienced shareholders to drive profitability and growth.”
