Oriflame Founders Offer to Buy Out Company

PARIS — Oriflame’s founders have made a cash offer of 8.89 billion Swedish kronor, or $922.5 million, to purchase the shares in the beauty company that they do not already own. Oriflame’s main owner, the af Jochnick family, with 30.81 percent of the Swedish group, said Wednesday that the offer it made to company stakeholders through Walnut Bidco plc is at 227 kronor a share. That values Oriflame at 12.9 billion kronor. Oriflame is a direct-seller of its own makeup, skin, body, hair and personal care, and fragrance. Its competitors include Avon Products Inc. and Yves Rocher. “Our family has been deeply involved with Oriflame since it founded the company in 1967, and has a strong sense of responsibility as the company’s main shareholder,” Alexander af Jochnick, representative of Walnut Bidco and chairman of Oriflame, said in a statement. “It has become increasingly obvious to the family that the company is facing a number of headwinds,” he continued, referring to a slowdown in activity in Asia and Turkey, for instance. “The family believes that the company needs to undertake a repositioning in key geographies, and that achieving this repositioning has challenges in the public market. We have therefore chosen to make an offer for the

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