Betterware de Mexico to Acquire Jafra U.S., Mexico

·2 min read

Household products business Betterware de Mexico has signed a deal to acquire Jafra’s U.S. and Mexican operations for $255 million.

Both companies use consultant sales forces to sell their products. Betterware’s team sells household goods, including cleaners and kitchenware, and Jafra’s consultants sell beauty products.

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Through the deal, Betterware will diversify its operations by adding beauty, including fragrances, makeup and skin care, to the company. Betterware will also bring in Jafra’s 443,000 consultants and brand ambassadors, the company said.

Betterware said it plans to focus on accelerating the e-commerce operations of both companies going forward, and that there are opportunities for synergies between the two businesses, though the plan is for them to continue to operate separately.

The deal is expected to close in the first half of 2022, pending regulatory approval in Mexico. Jafra’s U.S. and Mexican operations are being sold by Vorwerk Group, a German company.

“This is the perfect opportunity [to] accelerate Jafra’s growth by leveraging our scale and infrastructure,” said Betterware’s executive chairman Luis Campos on a call with analysts after the deal was revealed.

Executives said about 15 to 20 percent of the Jafra business is in the U.S., where Betterware hopes to grow its homewares business, and the rest is in Mexico.

Betterware executives said the company was looking at acquisitions where it could replicate its direct-selling model in other categories. “The fundamentals are there in Jafra, and this will make it easier to replicate our business model and diversification because we are already in home solution products…what we are going to do is to replicate our business model there. We can bring a lot of great initiatives in terms of product innovation,” Campos told analysts.

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