The deal to acquire cosmetics group Natura Siberica by AFK Sistema is almost complete, a source close to one of the parties said. Felix Lieb, CEO of Natura Siberica, confirmed this information in an interview with Vedomosti. A representative of AFK Sistema said that the deal would be closed in the near future. The interlocutors of Vedomosti do not disclose its conditions. Lieb said only that the corporation becomes the owner of 100% of Natura Siberica.

The deal became possible after the completion of corporate and inheritance conflicts in the cosmetics group. They began immediately after the death of the company’s founder Andrei Trubnikov in January 2021. The businessman‘s children, Dmitry and Ekaterina Trubnikov from their first marriage and Elizaveta from their second, as well as his widow Anastasia, claimed shares in the group’s structures. The latter at the time of the death of the businessman was in divorce proceedings with him. At the same time, the heirs challenged the appointments and actions of several temporary managers, and the management challenged a number of decisions by Trubnikov’s first wife, Irina, which caused the production and operation of stores to be suspended. AFK Sistema has clearly indicated that it is ready to consider the acquisition of Natura Siberica only after the completion of all disputes, Lieb said in an interview with Vedomosti.

At the end of last year, the Moscow City Court annulled the marriage between Andrey and Anastasia Trubnikov, after which his children were able to inherit, receiving approximately 20% each in the structures of Natura Siberica. The remaining shares (from 23 to 45% depending on the company) were owned by Irina Trubnikova, who sold them to Corporation AG JSC (whose interests it represented is not known). Now, according to SPARK-Interfax, the owner of the group’s companies is JSC Organic Rus, established in June 2022 by the former CEO of Neftegazstroyresurs, Dmitry Gubanov, its founders are not disclosed. It was not possible to contact Gubanov and Trubnikov’s children.

Natura Siberica under Trubnikov was one of the leaders in the production of natural cosmetics in Russia. At the end of 2020, the businessman himself estimated it at $500 million, while at the beginning of 2022, experts believed that it was already worth $70–100 million (5.5–7.9 billion rubles at the Central Bank exchange rate). General Director of Infoline-analytics Mikhail Burmistrov believes that the acquisition of this company by AFK Sistema could cost no more than 3 billion rubles, although he admits that the group’s financial results “look very good.” According to Natura Siberica’s own data, its revenue at the end of last year amounted to 10.2 billion rubles, which is 17.2% higher than in 2021. The company’s consolidated profit was not disclosed.

Natura Siberica still remains a quality asset and a recognizable brand with a long history, Tagir Sitdekov, President of AFK Sistema, told Vedomosti through the press service. According to him, the group has great potential for further business growth through the expansion of production and product lines, as well as the consolidation of the Russian cosmetics market.

The owner of the Kaufman brand agency, Stanislav Kaufman, says that the situation with conflicts in Natura Siberica certainly affected the brand, but in the end everything ended well, there is nothing critical for the company at the moment. He notes that the trademark is acquired by AFK Sistema together with the core team, and with additional financial injections from the new owners, the company can regain and strengthen its position, at least in the domestic market.

Aleksey Popovichev, executive director of the Rusbrand association, agrees with him: for Sistema, this is a good investment. According to him, Natura Siberica is indeed one of the most recognizable brands in the Russian cosmetics market, which actively developed its “legend” about natural products from Siberia. Subject to additional investment, it can take a significant share in the country, especially since this niche is freed up due to a decrease in activity and a reduction in the range of supplies from international competing companies, Popovichev concluded.