Oriflame Completes Recapitalization and Secures Investment to Fund Growth

Oriflame announced the successful completion of its comprehensive recapitalization, with the overwhelming support of the af Jochnick family and investors representing more than 90% of the Company’s bondholders. The recapitalization includes a substantial injection of €71.5m in new capital, comprising €50m of committed financing and an additional facility of €21.5m, from the af Jochnick family and a consortium of long-term investors.

The transformative transaction secures the long-term future of Oriflame, supporting the livelihood of its passionate and dedicated community of beauty entrepreneurs around the world. The transaction marks the beginning of a new chapter for Oriflame.

The af Jochnick family and a consortium of long-term investors have provided a substantial injection of new capital of
€71.5m delivering a de-levered and sustainable balance sheet.

The significant strategic investment provides the Company with a stable platform to accelerate its transformation plan, invest in innovation and drive a return to strong and sustained growth.

Oriflame’s transformation plan continues to deliver tangible results;  the successful rollout of the Beauty Community Model to almost 50 countries has driven positive momentum in key operational metrics and recruitment growth in 25 countries as of November.

The Company’s supply chain and service performance have now fully normalized following key operational transitions to enable reliable execution across markets and ensure Oriflame’s entrepreneurs receive a market-leading experience.

With a stable platform and operational momentum, Oriflame is well-positioned to serve its global community of beauty entrepreneurs while building on its longstanding heritage as a global leader in beauty and wellness.

Robert Bensoussan, Chairman of Oriflame, commented: “Oriflame has a strong heritage, global reach and a distinctive community-led business model. The recapitalisation provides a stable financial foundation from which to accelerate execution, invest in innovation and strengthen support for the Beauty Entrepreneur community. I look forward to working closely with management and the Board as the company enters this next phase of its transformation.”