AEEI buys majority stake in Orleans Cosmetics
JSE-LISTED African Equity Empowerment Investments (AEEI) yesterday acquired a majority interest in Orleans Cosmetics as the group moves to bolster its health and beauty division. Khalid Abdulla, the chief executive of AEEI, yesterday said that the group was delighted that it had 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 strategy,” Abdulla said.
The company said that it expected that its investment in Orleans would have a payback period of three to four years. And that this payback excluded the anticipated exponential capital appreciation expected from the investment. Orleans is the exclusive southern African distributor of imported, highend cosmetic brands such as Gatineau, Nuxe, RVB Skinlab/ diego dalla palma professional and Sothys. These products are sold to leading retailers such as Truworths and Woolworths among other retail outlets as well as to spas and beauty salons.
Don Kourie, the chief executive of Orleans, said he expected the group’s brands would grow quickly and significantly by building on a number of robust strategies, which AEEI is already implementing.
“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,” Kourie said.
Orleans was acquired to expand our health and beauty division, which is on track
AEEI’s current healthcare portfolio consists of Genius Biotherapeutics, Ribotech, and Wynberg Pharmaceuticals. In July AEEI reported that its revenue had increased by 47 percent from R305m to R449m in the year ended June.
This was mainly due to the significant revenue from its technology division, through organic growth and its acquisition of two companies, and its fishing division’s growth in the period. The group’s total asset base surged by 20 percent in the period from R1.5 billion to R1.8bn, supported by success in its operational performance as well as its investments.
Alasdair Neilson, the previous owner of Orleans, said the company would do very well in the AEEI stable: “AEEI is currently the top empowerment company in the country and is energetically forging ahead with innovative thinking and business practices and also building on its strategy by venturing into new territories and investments,” Neilson said.
Last year Empowerdex in its annual benchmark of JSElisted companies named AEEI as the most empowered company under the amended codes as well as the most empowered management control. Abdulla was earlier this year named as the top empowered business leader of the year at the 16th Oliver Empowerment Awards.