Abu Dhabi's IHC signs agreement to create beauty sector joint venture in the UAE

Abu Dhabi-based International Holding Company's subsidiary Multiply Group signed a merger agreement with Ben Suhail Group to create a beauty sector joint venture in the UAE.

The merged entity Omorfia Group will be 51 per cent owned by MG Wellness Holding, a subsidiary of Multiply Group, and 49 per cent by another shareholder, IHC said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded. Financial details of the deal were not disclosed.

As a fully integrated holding company, Omorfia Group will own and control 100 per cent of the company’s business-to-business consumer brands, including beauty giants Tips & Toes, Bedashing, Jazz Lounge Spa and the Ben Suhail Distribution business.

The partnership will see all salons and spas retain their individual brand identities and continue operations and services as usual, IHC said.

Tips & Toes has 35 branches across six cities in the UAE and Saudi Arabia, while Bedashing operates from 21 locations in the Emirates.

“The merger of business operations allows both brands to streamline their processes and accelerate growth in the beauty and grooming sector, with the group equally focused on growing its stronghold in the high-end beauty product distribution market within the region,” Syed Basar Shueb, IHC chief executive and managing director, said.

“Through this transaction, IHC will be able to grow and create synergies between some of the UAE’s most well-known beauty brands, while retaining the locations, offerings and exceptional quality of service that have made them so popular.”

Abu Dhabi-based IHC is looking to boost its portfolio through mergers and acquisitions, and strategic investments, in a number of sectors including real estate, agriculture, healthcare, food and beverage, utilities and industries.

In September, the company’s asset management subsidiary bought Dubai’s Inspire Integrated for Dh37 million ($10.07m) to expand its portfolio of real estate, infrastructure property management and facilities management services.

Its other investments in the past six months include a 60 per cent stake in Afkar Financial and Property Investments, a 48 per cent share in Emirates Driving Company and a 60 per cent interest in Royal Horizon Holding and its subsidiaries, among others.

The company’s acquisition spree in 2021 has led to a substantial growth in its balance sheet. At the end of June it had assets worth Dh58.32 billion, up from Dh14.01bn at the end of last year.