Oriflame Founders Make Offer To Buy Out Swedish Cosmetics Company

Oriflame Founders Make Offer To Buy Out Swedish Cosmetics Company

The founders of Oriflame have made an offer to buy out the shares in the Swedish beauty products company they do not own, valuing the company at 12.9 billion crowns (1.03 billion pounds).

Oriflame’s main owner, the af Jochnick family, said it had made a cash offer of 8.89 billion crowns or 227 crowns per share to remaining shareholders, representing a 35% premium to the 168.35 crown closing price for Oriflame’s stock on Monday.

Shares in the company, a rival to U.S. group Avon, surged 34 percent in opening deals.

Oriflame’s products range from makeup and skin and haircare to accessories and food additives and are sold by direct-selling agents.

The group has reduced its exposure to Russia and other CIS countries in recent years in the face of tough market conditions. It has over the past year also faced a slowdown in activity in its Asia & Turkey business.

The founding family, which controls 31 percent of Oriflame, said the company

“needs to undertake a repositioning in key geographies, and that achieving this repositioning has challenges in the public market.”

“We have therefore chosen to make an offer for the shares in the company that the family does not already own, in order to enable Oriflame to achieve this repositioning with the benefit of private ownership,”

the family said.

Oriflame said in a separate statement that independent board members had formed a bid committee, without af Jochnick family board members, that would evaluate the offer and announce its opinion no later than two weeks before the expiry of the acceptance period.

Oriflame’s products are sold in around 60 markets under many different brands of which Oriflame is the biggest.

About Oriflame

Founded in 1967, Oriflame is a beauty company selling direct in more than 60 countries. Its wide portfolio of Swedish, nature-inspired, innovative beauty products is marketed through approximately 3 million independent Oriflame Consultants, generating annual sales of around €1.4 billion.

Respect for people and nature underlies Oriflames operating principles and is reflected in its social and environmental policies. Oriflame supports numerous charities worldwide and is a co-founder of the World Childhood Foundation.

Get more information, facts and figures about Oriflame, click here for the Oriflame overview.

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Comments (1)

  1. Hello, I wish you progress and success always and wish this company progress and prosperity and to myself and to all the team and the family of this company
    All respect and appreciation for all

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