Sahi Cosmetics is the first Indonesian company to announce a sale to cosmetics giant Elcie Cosmetics for $5 billion, ending its 18-year relationship with the world’s largest cosmetics conglomerate.
The deal, which is valued at $1.8 billion, includes a $500 million cash infusion from Elcies investment arm, Sia Pertamina, and the purchase of Sahi’s existing portfolio of brands including cosmetics, jewelry and accessories.
The acquisition is expected to close within days, said a statement from SiaPertamina.
The combined entity will focus on developing new brands and the expansion of its existing brands.
Elcier Cosmetics will remain a subsidiary of Sia, while Sia Cosmetics’ portfolio will be merged with the portfolio of Sisia Cosmique.
Elcie, which operates in 170 countries, employs more than 3,000 people and makes products in more than 80 countries.
It has over 3,200 stores and employs more 30,000 employees worldwide.
Sia owns more than 60% of the cosmetics industry in Indonesia.
Sia Pernima, the company’s managing director, said in a statement that the deal “sets the stage for the continued growth and expansion of our portfolio, with a focus on creating new brands, including Elcia.”