Tupperware Corp. to acquire BeautiControl Inc. for 0.92 times revenue, The

Weekly Corporate Growth Report, Oct 2, 2000

The Deal: The Tupperware Corp. has agreed to purchase BeautiControl Inc. in a deal valued at $60 million. The acquisition is a move by Tupperware to begin selling cosmetics and nutritional products. Tupperware will pay $8.33 a share for BeautiControl stock.

Discussion: BeautiControl Inc. is a direct-sales firm selling its beauty care products to more than 70,000 independent sales consultants, who in turn sell to consumers. Consultants provide computer-assisted, head-to-toe makeup and fashion advice, usually through in-home demonstrations. The company's products provide skin and nail care and include fragrances, cosmetics, toiletries and nutritional and weight-- management food supplements.

The Tupperware Corp. makes a variety of household products, including bowls, mugs and storage containers. Tupperware parties, where independent salespeople touted the plasticware to their friends and neighbors, teaching them to make the trademark seal produce a "burp," were synonymous with American suburban life in the 1950s. Now nearly 1,000,000 salespeople in over 100 countries hold more than 14 million parties each year, but the company has expanded its sales channels to include the Internet, infomercials, direct mail and kiosks. The United States accounts for only 15 percent of Tupperware's business; Europe and Asia make up the bulk of sales. Tupperware is one of America's bestknown brands.