Esthetics International Group Berhad (“EIG” or “the Company”) is pleased to announce that its wholly-owned subsidiary EIG Haircare Sdn Bhd (formerly known as Esthetics Concept Sdn Bhd) (“EIGH”) has signed a Distribution Agreement (the “Agreement”) with Privity Pty Limited and EA Holland Pty Limited (together to be referred to as Hair Care Australia Group (“HCA Group”)).
The Agreement grants EIGH the exclusive rights to distribute the Evo range of professional hair care products in Hong Kong, Macau, Malaysia, Brunei, Singapore, Indonesia, Philippines, Cambodia, Thailand, Laos and Myanmar. The term of the Agreement is for a period of ten (10) years commencing from 1 April 2015 to 31 March 2025 with the option to renew for a further period of ten (10) years.
The Agreement will enable EIG to further leverage its professional hair care distribution network and expand its portfolio of professional hair care products which are sold through professional hair salons and select retail outlets.
The signing of the Agreement is also in-line with EIG’s strategy of securing more leading international brands for the distribution and retail of beauty, health and wellness products in ASEAN and Hong Kong.
Evo is one of the leading innovative professional hair care brands from Australia which is distributed in 22 countries worldwide and more than 1,000 professional hair salons in Australia alone.
Founded in 1975 in Adelaide, South Australia, HCA Group has over 40 years’ experience in the professional hair care industry and is the brand owner of Evo.
The Directors of EIG, having considered all relevant factors, is of the view that it is in the interest of EIG for EIGH to enter into the Agreement.
The signing of the Agreement will not have any effect on the share capital and substantial shareholdings structure of EIG. With focused and prudent sales and marketing efforts and barring unforeseen circumstances, the Agreement is expected to positively contribute to future profits, earnings per share and net assets of EIG.
None of the Directors of the Company, substantial shareholders and/or persons connected to them has any interest, direct or indirect in the above transaction.
This announcement is dated 4 February 2015.