In an agreement announced this week, Betterware de Mexico has signed a $255 million agreement to acquire 100% of JAFRA’s operations within the U.S. and Mexico. The acquisition is expected to finalize early this year.
Betterware de Mexico stated that this acquisition is expected to add more than $46 million of EBITDA, even before cost synergies, and that JAFRA’s existing EBITDA alone is more than enough to cover the interest expense of the acquisition.
“We are excited to announce the acquisition of JAFRA and believe it represents a perfect strategic fit for Betterware,” said Luis G. Campos, Executive Chairman of Betterware’s Board. “This acquisition will expand our growth potential as we extend our geographic reach to include North America, strengthen our positioning in Mexico and expand our categories served to include the Beauty and Personal Care products. With the addition of JAFRA’s [approximately] 443,000 independent leaders and consultants, the acquisition will also provide us with opportunity to continue to capitalize on the strong direct-selling online market trends and the substantial e-commerce opportunity we see for our business. We believe significant growth opportunity lies ahead for JAFRA through continuation of their digital transformation, which will be accelerated by leveraging our scale and infrastructure, and we look forward to welcoming the entire JAFRA team to our company.”
This acquisition was compelling, according to Betterware de Mexico, because of the opportunity it provided to increase diversification of the company’s current operations by category and geography; Betterware’s omnichannel capabilities to digitally transform JAFRA’s ecommerce approach; and because both companies can be managed independently by existing management teams.