ECC Group acquires majority stake in Source Beauty
- Egypt-based cosmetics company ECC group has acquired a majority stake in beauty products marketplace Source Beauty, for an unknown amount.
- Founded in 2018 by Lydia Schoonderbeek, Source Beauty is a female-led one-stop shop that provides users with multiple choices of local and international beauty brands. ECC is an Egypt-based specialised contract manufacturer for the cosmetics and personal care industries, led by Mohamed Salah and Ahmed Abo El Hamail.
- Lorax Capital Partners recently acquired a minority stake in ECC and is supporting the company’s expansion plans.
Source Beauty, the first and leading Egyptian-based beauty platform, received an investment from ECC in return for a majority stake in the business. ECC is one of the leading beauty and personal care manufacturers in Egypt and provides a substantial opportunity to offer an enhanced service to Source Beauty’s clients, including new product innovation, and manufacturing know-how among others. The group offers 360-degree services in manufacturing and distributing scientifically proven innovative cosmetic products in the country. Lorax Capital Partners recently acquired a significant minority stake in ECC and is supporting the company’s expansion plans.
Launched in 2018, Source Beauty is a women-led one-stop shop with over 85 local and international beauty brands and 60,000 users. This marketplace provides customers with an affordable and available solution to beauty products in the country and exposes them to products sourced from the best raw materials by female start-ups. It also provides established and emerging brands with the most incredible interactive shop window.
Lydia Schoonderbeek, the founder and CEO of Source Beauty, will continue in her role as CEO, in addition to assuming the role of Chief Creative Officer of ECC. "The funds will reinforce an accelerated digital and physical marketing strategy to reach a broader customer base, enhancing customer retention and brand visibility as well as expanding the team," Lydia commented. “This strategic investment by ECC is a game changer for Source Beauty and we’re all hugely excited about the future. Since Source Beauty’s inception, I have been determined to change the beauty space in Egypt to truly address the needs of the Egyptian consumer”.
The beauty industry in Egypt is growing exponentially reaching a market volume of $187.70m by 2025. Factors such as the increasing customs on international beauty products and high demand for variety have made customers less dependent on imported beauty products, giving way to local manufacturers. There is therefore a profound need to promote inclusivity, sustainability, availability and affordability for the average Egyptian beauty consumer. “We will continue to develop and work towards becoming Egypt’s largest multi-brand online beauty retailer. We are confident that this partnership with ECC will get us there.” Lydia added.
Dr Mohamed Salah, Co-Founder and CEO of ECC, commented, “We are excited about Source Beauty’s role as part of the group and are equally excited about working with Lydia and her team to continue their journey in a market that is price sensitive and seeks sustainability.” Dr Ahmed Abo El Hamail, Co-Founder and Vice-Chairman of ECC also added, “Source Beauty’s brand and Company values make it a great fit for us. We are delighted to back Lydia, and believe that her continued role at Source Beauty as well as her new role at ECC complement the new chapter we are building for the group.”
Al-Tamimi and HVK Stevens advised ECC as local and international counsel for this transaction.
Van Campen Liem advised Source Beauty with this transaction.