Pharmaceutical drugs company Olainfarm has acquired 100 percent shares in eco cosmetics producer SIA Kiwi Cosmetics, confirmed this week.
The acquisition will place both companies in new markets in Latvia, with SIA Kiwi Cosmetics producing eco-friendly cosmetics for both men and women, and was founded in 2011 under the ‘Kivvi’ name. With the majority of the company’s products certified to the Ecocert standards, its targeting a successful area of the market with natural and organic products continuing to surge in success with eco-conscious consumers.
The current management team at SIA Kiwi Cosmetics will continue at the company.
Valerijs Maligins, Chairman of Olainfarm’s Board, said, “We very highly value the ability of different Latvian producers to supply the best quality demanded products to the increasing market of admirers of a green lifestyle. Latvia has several well-cherished companies both, in area of green pharma and eco-cosmetics that for more rapid development need a little stronger base. Therefore, we continue what we started with acquisition of Silvanols, Latvia’s green pharma leader, and are acquiring SIA Kiwi Cosmetics, a producer of eco-cosmetics, a company, which is also driven by a desire to help people use the power of nature. We see many synergies between Kiwi Cosmetics and Silvanols in production, marketing and exports, and between Kiwi Cosmetics and Latvijas Aptieka in distribution of eco-cosmetics with health claims. Also, experience of Olainfarm in production development, optimization and export expansion will provide considerable contribution to further growth of newly acquired company.”
In total, 30 percent of SIA Kiwi Cosmetic’s sales are made in Latvia, while 70 percent are exports. The company is said to have turned over EURO123,000 in 2015, according to preliminary results.