African Equity Empowerment Investments Limited (AEEI) has announced the acquisition of a majority stake in South African cosmetics distribution company Orleans Cosmetics, according to a report by Business Report.
Said to be a strategic move to complement it’s health and beauty division, the acquisition will expand AEEI’s portfolio with the addition of leading cosmetic brands such as Gatineau, NUXE, RVB SKINLAB, diego dalla palma professional and Sothys.
The investment is said to have a pay-back period of around three to four years, excluding the exponential capital appreciation expected to occur from the investment.
Khalid Abdulla, Group Chief Executive Officer of AEEI said, “I am delighted that AEEI has concluded the deal with Orleans. Orleans was acquired to expand our health and beauty division, which is right on track in terms of organic and acquisitive growth and in line with AEEI’s Vision 2020 Vision strategy.”
Don Kourie, Orleans Cosmetics Chief Executive Officer and shareholder continued, “We intend to double the size of the business within the next three to four years, looking to be the key player in the prestige and masstige cosmetics industries. With the support of AEEI and its track record for growing profitable businesses, it is envisaged that the company’s brands will grow quickly and significantly by building on a number of robust strategies which AEEI is already implementing.”