Magazine Luiza purchase Time Cosmetics for $ 25.6 million

SAO PAULO-the Magazine Luiza celebrated on Thursday the purchase contract of flower fields, company also known as Cosmetic Season, for $ 25.6 million.
The payment was divided into a fixed portion of R $ 13.6 million to be paid on the day of closing of the transaction, scheduled to happen within 60 days, and a variable portion of R $ 12 million. The second obligation will be divided into a payment of $ 4 million on the first anniversary of the date of closing and another $ 8 million in the second anniversary. The slice variable is subject to fulfillment of certain conditions in the contract.
The shareholder meeting to get to know the operation will be convened within 10 days. Investors who do not agree with the business shall be entitled to withdraw from the company by the reimbursement of their actions.
According to the fact, the Flowery Fields owns the site "www.epocacosmeticos.com.br", specialized in online sales of beauty products. The operation, in the opinion of the company, reinforces the strategy of expansion and consolidation of expertise in e-commerce in a thread that has attractive margins, grows significantly in Brazil and brings customer flow to the site given the lower average ticket and repurchase rate.
The Magazine Luiza said also that the purchase represents an opportunity to increase the number of products that can be sold in other channels, such as the magazinevocê. The Cosmetics was a partner of Magazine Luiza two years ago.
The Cosmetics presented a sales growth of approximately 60% over the last two years, totaling r $ 15.9 million gross revenue. "With this investment, the Magazine Luiza reaffirms its commitment to the sustainable growth of the company and value creation for its shareholders," said the company.