JERUSALEM, April 10(Xinhua) -- Leading Chinese investment company Fosun Group Sunday signed anagreement with the shareholders of Ahava to fully acquire the Israeli Dead Seacosmetics company for 290 million NIS(about 77 million U.S. dollars).
Fosun Vice Chairman and CEO Liang Xinjun and GaonHoldings CEO Guy Regev signed the deal on Sunday afternoon at Jerusalem's David Citadel Hotel, after monthsof intense negotiations. The signing ceremony was also witnessed by Israeliofficials.
Under the agreement, Fosun will acquire the holdingsfrom all Ahava's shareholders including Gaon Holdings, Livnat family, ShamrockIsrael Growth Fund Advisors, Kibbutz Mitzpe Shalem, and Kibbutz Kalia.
Liang said he was delighted to have succeeded inacquiring "such a famous, strong and successful brand as Ahava under thismutually beneficial agreement." He said Fosun will endeavor to extend thesuccess of Ahava to China and other countries.
Dror Barzeli, chairman of Ahava's board, hailed the acquisition in an interview with Xinhua before the signing ceremony.
"This is a great acquisition, it's a reallystrategic acquisition. Definitely there should be a lot of synergy between thenew share holders of Fosun group and Ahava. That's exactly the perfect partner and the perfect share holder which really will help us to expand our international activity to China,"he said.
Barzeli told Xinhua that Ahava's yearly turnover amounts to 50 million dollars, of which the U.S. and European marketscontribute 20 million dollars and 15 million dollars separately.
"Definitely China should be a much biggermarket for us based on our great portfolio of nature products and our good relationship with the Chinese consumers," he said.
Barzeli said Ahava, which has subsidiaries in Germany and the United States, is looking forward to having a subsidiary in China as well,in order to be closer to Chinese consumers.
The transaction, which will be completed within sixmonths, is the latest of a number of successful acquisitions of Israeli companies by Chinese investors in the past few years.
In early 2015, China's Bright Food purchased a 77-percent controlling interest in Israel'slargest food company Tnuva for 2.5 billion dollars. Enditem
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