Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Founders of Swedish Cosmetics Brand Oriflame Offer to Buy out Company

The offer from Oriflame’s main owner, the af Jochnick family, values the company at 12.9 billion crowns ($1.3 billion).
Oriflame Eco Beauty range | Source: Oriflame Press Images
Oriflame Eco Beauty range | Source: Oriflame Press Images (Oriflame)

STOCKHOLM, Sweden — 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 ($1.3 billion).

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 percent premium to the 168.35 crown closing price for Oriflame's stock on Monday.

Shares in the company, a rival to US 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.

ADVERTISEMENT

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.

By Anna Ringstrom; editors: Simon Johnson and Louise Heavens.

In This Article
Topics
Organisations

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Beauty
Analysis and advice on the fast-evolving beauty business.
view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.