Oriflame to divest its Russian manufacturing unit

2023-04-28 13:30

Oriflame to divest its Russian manufacturing unit

As previously announced, Oriflame has conducted a strategic review of its assets in Russia. This process has led to a decision to divest the manufacturing entity in the country. Today Oriflame is announcing that it has signed a binding agreement with Arnest Management LLC (Arnest), where Arnest will acquire 100% of the shares in Cetes Cosmetics Russia. The agreement is subject to certain conditions being fulfilled by the parties during the second quarter of 2023.

Arnest is a well-established supplier of high-quality cosmetics products with an international client base, and with whom Oriflame has had a strong partnership for over 11 years. Arnest is the largest manufacturer of perfume, cosmetic and household products in aerosol package in Russia. During this process it has been of importance to find a solution to secure a future for the employees as well as to secure ongoing supply to the Cetes Cosmetics clients in Russia (incl. Oriflame).

Oriflame expects that the transaction will be closed in the second quarter of 2023. The divestment of Cetes Cosmetics Russia and certain other assets is expected to lead to a realized accounting profit that will be detailed in the quarter 2 interim report.

For additional information, please contact:

Gabriel Bennet, Chairman Cetes Cosmetics
Email: [email protected]
Telephone: +41798263769

Carl Rogberg, CFO Oriflame Cosmetics
Email: [email protected]
Telephone: +447738998737

We are Oriflame
Founded in 1967, Oriflame is a social selling beauty company with sales in more than 60 countries. Its portfolio of Swedish, nature-inspired, innovative beauty products is marketed through more than two million members, generating annual sales of almost one billion Euro (2022). Respect for people and nature underlies Oriflame's operating principles and is reflected in its social and environmental policies. Oriflame supports numerous charities worldwide and is a Co-founder of the World Childhood Foundation.