Enterprise Press | ECC paid USD 5 mn for majority stake in Source Beauty
UPDATE- ECC reveals the price tag on its newly acquired stake in Source Beauty: Egyptian Company for Cosmetics (ECC) invested USD 5 mn to acquire a majority stake through capital increase in local online beauty store Source Beauty, according to a joint press release (pdf) yesterday. The two companies first announced the acquisition earlier this week but didn’t specify the size of the transaction. Source Beauty founder and CEO Lydia Schoonderbeek declined to mention how much of the company was sold to ECC when we asked yesterday.
Where will the funding go? “We’re going to grow our talent, build on our authenticity, increase our tech footprint, and grow our product offering to help us further engage with the younger generation,” Source Beauty founder and CEO Lydia Schoonderbeek told us yesterday.
The local market remains its primary focus: The startup has no geographical expansion plans in the short-term and is putting all its effort into growing in the Arab world’s most populous consumer market, Schoonderbeek said.
About the company: Launched in 2018, Source Beauty is an online beauty marketplace offering products from more than 85 local and international brands, and has 60k users. ECC — which counts Lorax Capital Partners among its minority shareholders — manufactures beauty and personal care products and owns haircare and skincare company Bobana and cosmeceuticals player Infinity Clinic Pharma. The acquisition will see Schoonderbeek serve as ECC’s chief creative officer, alongside her role as CEO of Source Beauty.
ADVISORS- Al Tamimi and HVK Stevens acted as local and international counsel to ECC while Van Campen Liem advised Source Beauty.