China’s Fosun agrees to acquire Israeli cosmetics firm Ahava from Gaon

Chinese business corporation Fosun International has agreed to acquire majority shares of the Israeli cosmetics company Ahava from B. Gaon Holdings Ltd for approximately ILS300m ($76.19m).

Globes reported that ‘an agreement in principle had been signed by Ahava’s existing shareholders to sell all or part of their shares in the company.’

Under the deal, Fosun will hold at least 51% of Ahava’s shares. Gaon currently owns 16% of Ahava while the other main shareholders in Ahava are Shamrock Israel Growth Fund, the Livnat family, and Kibbutz Mitzpe Shalem.

The number of shares to be purchased has not been finalised yet, however, it is expected that the Chinese firm may hold a controlling stake in Ahava.

The deal is expected to close in 90 days after the receipt of regulatory approvals.

Ahava, which uses Dead Sea minerals and mud to make skincare products, had gained ILS183m ($46.4m) in revenue by the end of 2014.

In 2014, Ahava had nearly 225 employees, with 25% fewer employees than it had in 2013. The brand can be found in over 30 countries.

The company was planning to relocate its manufacturing activity from Kibbutz Mitzpe Shalem, to the area of the nearby Tamar Regional Council, reported Globes.

Ahava was also reportedly planning to construct a new plant with an investment of ILS10m ($2.5m).