South Africa: Trinitas Equity Partners in beauty company deal

Trinitas Equity Partners, together with its partners, has acquired the South African beauty company, Avroy Shlain. The competitive seven-month process culminated in a deal that includes a significant management shareholding and two local family offices. Debt facilities have been provided by Investec Private Capital.

Andrew Hall, one of Trinitas’ founding executives, said that a significant mid-market business like Avroy Shlain was a compelling investment opportunity and a good fit for the Trinitas portfolio and investment strategy.

“Avroy Shlain is a market leader in the personal care industry that offers long-term capital growth and has a history of profitability and predictable cash flows,” he said. “It offers excellent growth prospects, not least because there are untapped markets in South Africa. The consumer space is an obvious target for us given the emerging middle class. Equally important is the fact that more than 90% of Avroy Shlain products are manufactured locally.”

The business was started by Avroy and Beryl Shlain in 1973 and sold in turn to two large US multinationals, first Sara Lee Corporation in 1993 and then Tupperware Brands Corporation in 2005. This deal brings the successful South African direct selling company home, shortly before it celebrates its fiftieth anniversary.

According to Hall, it’s a critical element of a successful Trinitas transaction to align with a strong management team, de-risking the transaction by leveraging their expertise and institutional knowledge. “Not only did we achieve this deal with no staff retrenchments, but we also gained new CEO Justin Hewett, who knows the business well,” said Hall.

Hewett was MD of Avroy Shlain South Africa for five years and then spent a further six years with Tupperware in international roles, culminating in the position of Group President for Asia Pacific.

The Avroy Shlain sales network hovers around 100,000 independent beauty advisors, the majority of whom are women representing the country’s demographic. They sell 1 million products per month spanning fragrances, colour cosmetics, skincare and personal care.

In line with the Trinitas geographical focus, the business is predominantly South African with strong representation in sub-Saharan Africa, specifically Botswana, eSwatini, Lesotho, Mozambique, and Namibia. Other countries may be added in the future, but the initial focus will be on South Africa’s under-served areas.

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