S&P: Jafra on developing watch

Standard & Poor's said it placed its B+ corporate credit and senior secured bank loan and B- senior subordinated debt ratings on Jafra Cosmetics International Inc. on CreditWatch with developing implications, following the announcement that Jafra will be acquired by Vorwerk & Co. KG from current financial sponsor/owner Clayton Dubilier & Rice. Terms of the transaction have not been disclosed.

Jafra is a leading direct seller of cosmetics products with annual sales of about $400 million. Vorwerk is a privately held direct seller of household appliances, industrial and financial services, and carpets, with 2003 sales of $2 billion.

To resolve the CreditWatch listing, S&P said it will meet with Vorwerk to discuss management's future operating and financial strategies as well as potential future financial support for Jafra's obligations.

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