AS MADARA Cosmetics announces landmark brand transaction

MADARA Cosmetics AS has signed a binding agreement with Oy Transmeri Ab (‘Transmeri’) for the asset-based carve-out and future contract manufacturing facilitation for the MOSSA brand.

Since the launch of the MOSSA brand in 2014 its sales have largely retained a ca.10% share of overall turnover. This reflects the dedication which has been directed towards growing the flagship MÁDARA brand across many different geographical markets as the Company’s primary corporate identity.

Key aspects of MOSSA (compared with the MÁDARA brand) include being positioned at the middle of the price range, with a slightly higher price than most competitors in mass market channels, justifying the price with natural, organic ingredients. In comparison MÁDARA is positioned at the more affordable end of the premium price segment in most markets. Moreover, the MOSSA brand has had a different distribution strategy due to its design for mass retail channels. This transaction is expected to secure further MOSSA brand growth in the Finnish market, while at the same time boosting contract manufacturing capacity volumes. The Company will retain ongoing product development responsibility for MOSSA.

“Having assumed the key role in bringing the Company to the Latvian capital market in 2017 it has been a pleasure to see the value it has generated to its investors since then (close to twice the IPO price) as well as through the brand-based corporate transaction unique to the Latvian market” says Ivars Bergmanis, partner at ViaClarus OÜ.

The total consideration is EUR 4 million and closing of the transaction is expected on April 30, 2024. Due to Oy Transmeri Group Ab’s shareholding in the Company (22.89% of shares as of the date of this announcement) this transaction is deemed to have been undertaken with a related party.

The financial advisor for the transaction was ViaClarus OÜ and the legal support was provided by ZAB Eversheds Sutherland Bitāns SIA.