The sale of its 49% stake in Joint Venture with The Estée Lauder Companies, after 21 years of successful cooperation, for a total amount of € 55.2 million was announced by GR. SARANTIS SA.
As part of its “go-to-market” strategy, The Estée Lauder Companies decided from June 15, 2022 to carry out its activities in the Greek market as well as the Balkan market directly, in accordance with the approach followed in the other EMEA This transaction does not affect the existing employment relationship of the employees of the consortium.
In addition, the above agreement is in line with the strategy of the Sarantis Group and occurred in the context of the commitment of the management to focus on the strategic activities of the Group and the utilization of financial and human resources to enhance the further development of the Group.
More specifically:
a) through the strengthening of its cash flows it will be possible to strengthen the strategic acquisition plan in the areas of the Group’s activity. The utilization of the incoming funds will make it possible to immediately replace the profitability of Joint Venture, from activities that are part of the strategic product categories in which the Group operates.
b) the dismissal of Mr. Grigoris Sarantis, who until now was the Managing Director of Joint Venture, will have the effect of strengthening the management team of the Group, as it will contribute to addressing the challenges of the current business environment.
c) the release of the Group from Joint Venture, will in the coming years give the Group the opportunity to enter into agreements with foreign companies, who would like to utilize the Group’s network and know-how, not only in Greece but also in its countries abroad.
The Management of the Group believes that the release from Joint Venture opens unlimited possibilities for the expansion and upward course of the Group, while the existing profitability of Joint Venture, can be immediately replaced by at least 150%, from activities fully compatible with strategic activities of the Group.
Source: Capital
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