Egyptian Company for Cosmetics acquires e-commerce beauty platform for US$5M
22 Sep 2022 --- Egyptian Company for Cosmetics (ECC) has acquired a majority stake in Egypt-based Source Beauty for US$5 million.
“The funds will reinforce an accelerated digital and physical marketing strategy to reach a broader customer base, enhancing customer retention and brand visibility as well as expanding the team,” comments Lydia Schoonderbeek, founder and CEO at Source Beauty.
“We will continue to develop and work toward becoming Egypt’s largest multi-brand online beauty retailer. We are confident that this partnership with ECC will get us there.”
ECC manufactures beauty and personal care in Egypt. Its acquisition provides a “substantial opportunity” to enhance the services offered to Source Beauty’s clients. This includes product innovation and manufacturing.
Moreover, ECC will enable various services for manufacturing and distributing scientifically based cosmetic products in the country.
Local demand for local products
Egyptian customers are less dependent on imported beauty products. ECC shares that the beauty industry in Egypt is “growing exponentially.”
According to ECC, local demand rose due to the increased customs on international beauty products, and the high demand for variety has made customers less dependent on imported beauty products. This change provides opportunities to local manufacturers.
Furthermore, the company highlights a “profound need” to promote inclusivity, sustainability, availability and affordability for the average Egyptian beauty consumer.
Launched in 2018, Source Beauty features over 85 local and international beauty brands and 60,000 users.
New structures
Schoonderbeek will continue in her CEO role and take on the chief creative officer position at ECC.
“Source Beauty’s brand and company values make it a great fit for us. We back Lydia and believe that her continued role at Source Beauty and her new role at ECC complement the new chapter we are building for the group,” says Dr. Ahmed Abo El Hamail, co-Founder and vice-chairman at ECC.
“This strategic investment by ECC is a game changer for Source Beauty. Since Source Beauty’s inception, I have been determined to truly change the beauty space in Egypt to address the needs of the Egyptian consumer,” adds Schoonderbeek.
Transaction advisors
Al-Tamimi and HVK Stevens advised ECC as both local and international counsel for the transaction. Van Campen Liem recommended Source Beauty with the transaction.
Additionally, Lorax Capital Partners recently acquired a minority stake in ECC and supported the company’s expansion plans.
Global acquisitions
Last month, Global Amines Company, a 50:50 joint venture of Clariant and Wilmar, signed an agreement to acquire the global quats and ester quats business from Clariant, expected to close in the first half of 2023.
Vitamin E manufacturer Kensing inked a deal to acquire German specialty chemicals company Evonik’s amphoteric surfactant and specialty esters production operations in Virginia, US. The acquired operations focus on skincare, hair care and oral care applications in the US market.
Moreover, Azelis and Chemical Solutions Sdn Bhd – one of Malaysia’s top distributors of raw materials in the personal care, cosmetics and household markets – signed an agreement for Azelis to buy 100% of the company’s shares. Through the acquisition, Azelis is now well-positioned to benefit from Malaysia’s expanding personal care market, particularly in the lucrative Halal cosmetic sector.
Edited by Venya Patel
