Chicago cosmetics firm snatches up Poland's Soraya
The maker of internationally distributed St. Ives Swiss Formula skin care products and Alberto VO5 hair products has purchased a 100% stake in Polish cosmetics company Soraya for an undisclosed amount.
"We are looking for opportunities to increase our presence in that whole geographical area," said Dan Stone, vice president of corporate communications for the Chicago-based company, Alberto-Culver. He said the company had already purchased Scandinavian cosmetic companies Cederroth and Molnlycke Toiletries.
Alberto-Culver's investment scouts chose the firm for its existing platform in Poland, which consists of a sales force, factory and distribution centers, but not for that reason alone. Stone said Soraya stands out on its own as a maker of quality skin-care products and was "attractive to us for (its) future potential."
The Polish company was founded in the late 1980's by Warsaw biologist Jolanta Zwolinska and several partners. Zwolinska later co-founded Dermika cosmetics.
"I would say our cosmetics are one of the best that are on the market," said Soraya's managing director, Pawel Ornatek. Thorough research, an emphasis on quality and effective management have allowed Soraya to compete in a marketplace in which international brands often dominate, he said. And the company competes not at the bottom, but in the upper-middle price range.
Some of the company's popular products include anti-bacterial creams and lotions for younger people, collagen and elastin "bioactive" products, ultra-moisturizing creams and products for people with sensitive skin, Ornatek said. Soraya has not released its 1999 earnings, but Ornatek said the company saw revenue of more than zl. 30 million ($8.57 million) in 1998.
The new parent company in turn reported revenue of $2 billion last year. In addition to its St. Ives Swiss Formula and Alberto V05 lines, Alberto-Culver produces a range of consumer products including Mrs. Dash, Molly McButter, and Static Guard. It also owns the Sally Beauty chain, a world leader in beauty salon supplies in the United States, Britain, Germany and Japan.
Ornatek, however, said he sees opportunity for growth and expansion into surrounding countries. "(The purchase) means a lot of new opportunities for Soraya and for the local community ... because if we grow our products that means also additional jobs," he said. "I'm sure (Alberto-Culver) will bring know-how."
Soraya is the first private cosmetics firm in Poland to be acquired by a foreign investor.
