Axel Johnson buys 70% of Skin City.

Axel Johnson, a Stockholm, Sweden-based investment company announced it had acquired 70% of the shares in Skin City.

The financial details of the transaction remain undisclosed and Skin City will continue to operate independently.

Skin City, founded in 2011 by Annica Forsgren Kjellman and Mikael Kjellman, developed an e-commerce company offering professional skin care products and advice directly to end-customers. The company is profitable, with sales in 2016 of SEK 186M ($22M), a 75% yoy increase.

With the acquisition, Axel Johnson widens its offering within beauty and strengthens its position within e-commerce.

Skin City was owned by its founders and by Rite Ventures, which took an equity position in the company in 2014. After this deal, the founders and Rite Ventures remain minority owners, and Annica Forsgren Kjellman and Mikael Kjellman remain in the company in their current positions.