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30.03.2004 – 18:40

Clayton, Dubilier & Rice

Verkauf von Jafra an Vorwerk


Vorwerk Reaches Agreement with Clayton, Dubilier & Rice to Acquire
Jafra Cosmetics
Leading Direct Marketer of Beauty Care Products Poised for Future
Vorwerk & Co. KG, a family-owned company based in Wuppertal,
Germany, and Clayton, Dubilier & Rice, Inc., a leading global private
equity firm, jointly announced today an agreement under which Vorwerk
will acquire 100% of Jafra Cosmetics, a leading direct selling
company of high quality beauty products with annual net sales of
approximately $400 million.  A CD&R-managed fund owns approximately
84% of Jafra, which is based in Westlake Village, California.  Terms
were not disclosed.
The acquisition represents an expansion of Vorwerk's direct sales
activities into cosmetics, fragrances and skin care products, which
is the largest and fastest growing direct sales segment worldwide.
Dr. Jörg Mittelsten Scheid, Managing Partner of Vorwerk said, "Our
core competency is direct sales. With Jafra Cosmetics, we are
expanding our portfolio to include a company with an excellent brand
name, high profitability with strong growth prospects, and very
competent management."  Achim Schwanitz, Managing Partner of Vorwerk,
further stated, "The company's corporate culture and its
advisory-oriented sales approach using trained consultants to market
Jafra's high-quality brand-name products all fit perfectly into
Vorwerk's corporate strategy.  Jafra's management team will continue
to lead the company as a separate entity within the Vorwerk group."
"The management team looks forward to a new growth phase as part of
Vorwerk," said Ron Clark, who will remain Chairman and Chief
Executive Officer of Jafra. "We have greatly valued our partnership
with CD&R and their strong support in helping us build the company."
Thomas E. Ireland, a CD&R operating partner, said, "Our investment
in Jafra is an example of how CD&R successfully acquires global
businesses that are part of larger corporate multinationals and then
works closely with management to create stronger and more profitable
stand-alone businesses." David A. Novak, a CD&R financial partner
said, "The many growth initiatives and operational enhancements
implemented by Jafra's outstanding leadership team drove a 400%
increase in the company's profits since 1998 and significant cash
flow generation.  The company is well positioned for continued
success under Vorwerk's ownership."
The transaction is subject to customary regulatory approvals and
is expected to close in the second quarter of 2004.
GF Capital Management & Advisors acted as the financial advisor to
Vorwerk in the transaction.  The legal advisors were Simpson, Thacher
& Bartlett, LLP for Vorwerk and Debevoise & Plimpton for the company.
About Jafra
Jafra is a leading direct seller of premium skin care products,
color cosmetics, body care products, fragrances and other personal
care products with annual revenues of 400 million USD.  The company's
base of over 400,000 consultants sells the products worldwide. The
main markets for the Jafra brand are Mexico and the U.S. In addition,
Jafra's independent sales representatives operate in 10 countries in
the Americas and Europe, including Brazil, Argentina, Germany,
Austria, Switzerland, the Netherlands and Italy.
Jafra was founded as a family company in 1956 by Jan and Frank Day.
The aim of the founders was to build up a company that would empower
women to develop career opportunities for themselves while still
being able to focus on raising and caring for their families.
About Vorwerk
Vorwerk, founded by Carl Vorwerk in Wuppertal, Germany in 1883, is
a global family enterprise. With its core business in direct sales of
high-quality household appliances, as well as industrial and
financial services and carpets, the Vorwerk Group achieved annual
turnover of 1.6 billion euros (2 billion USD) in 2003. Vorwerk
employs over 20,000 permanent staff members worldwide, along with
26,000 advisers selling high-quality household appliances either
part-time or full-time. With the addition of Jafra, Vorwerk's
turnover will increase to 2 billion euros (2.5 billion USD).  For
more information about Vorwerk & Co. KG, visit
About Clayton, Dubilier & Rice
CD&R acquired Jafra from The Gillette Company in 1998 and over
that period the company has doubled the global consultant base to
over 400,000, introduced new personal care products, and increased
penetration into its primary U.S. and Mexican markets, among other
key accomplishments.
CD&R is a leading private equity investment firm that has earned
consistent, superior investment returns using an integrated
operational and financial approach to build and grow portfolio
businesses. Half of the firm's partners are seasoned corporate
executives from major industrial enterprises and half come from
mergers and acquisitions, financing or investment backgrounds. The
Jafra sale follows the firm's recently completed sale of Kinko's to
FedEx for $2.4 billion and the IPO of SIRVA, Inc., the leading global
relocations company. The firm also announced the $1.65 billion
acquisition of VWR International, the U.S. headquartered distributor
of laboratory supplies from Merck KGaA. Since its founding in 1978,
CD&R has managed the investment of over $4.5 billion in 36 businesses
- mostly subsidiaries or divisions of large multi-business
corporations - representing a broad range of industries with an
aggregate transaction value in excess of $19 billion and revenues of
more than $25 billion. The firm has offices in New York and London.
For more information about CD&R, visit


Thomas C. Franco
Chris Tofalli
Broadgate Consultants, Inc.

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