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Oriflame Expansion in Africa
Posted: June 4, 2012
Oriflame Cosmetics S.A. announced the expansion of its operations into East Africa by its acquisition of the businesses in Kenya, Tanzania and Uganda previously run by a franchisee. This acquisition is in line with Oriflame's strategy of further expanding its geographical footprint in global growth areas by making inroads into sub-Saharan Africa.
"After very encouraging experiences and success in Oriflame's present North Africa business, we are expanding our market presence by acquiring our franchisee operations in East Africa. We have a long-term commitment to develop the direct sales of cosmetics on the African continent and look forward to continued success in this region," Oriflame CEO Magnus Brännström comments.
The operations will be run in three separate legal entities managed from Kenya. The acquisition was concluded on May 29 and the legal entities will be part of the EMEA region as from the second quarter 2012. The acquired entities are not expected to have a material impact on the group's financial statements of 2012, and Oriflame and the franchisee counterpart agreed to not disclose the terms of the acquisition.