Fosun agrees to buy Ahava for $77m

China-based investment group Fosun Group (Fosun) has signed an agreement to buy all the shares of Israel-based Ahava Dead Sea Laboratories (Ahava), a cosmetic manufacturer, for $77m.

Under the deal, Fosun will buy the assets from the current shareholders of Ahava that includes Gaon, Livnat family, Shamrock Israel Growth Fund Advisors, Kibbutz Mitzpe Shalem and Kibbutz Kaliaan.

Established in the Dead Sea region, Ahava is involved in the production of mineral skincare products, which include Dead Sea Osmoter Facial Serum, Facial Mud Exfoliator and Active moisture gel cream.

Fosun Group vice-chairman and CEO Liang Xinjun said: "We feel very confident about the market in Israel and continue to seek suitable investment opportunities in different areas in the country.

"We are glad to have succeeded in acquiring such a famous, strong and successful brand as Ahava under this mutually beneficial agreement.

"We will endeavour to extend the success of this brand to China and other countries."

The company began investing in the Israeli market in 2013 with the acquisition of Alma Lasers, a laser beauty equipment company.

Xinjun also added: "China’s economy will be increasingly driven by consumption. On the demand side, the most noteworthy are the desires to preserve and increase the value of household wealth and those for maintaining health and happy life of every family.

"Therefore, Fosun persistently focused its assets on B2F (business to family) and invested in wealth, health and happiness segments. We will tap both the internal and external core resources of Fosun and refine our products with artisan spirit in order to provide families with one-stop integrated solution for wealth, health and happiness.

"This enables us to create value for our clients through good services."

The deal is expected to be completed in six months, reports China Daily.