Israeli company Radiancy announced today that it had signed an agreement with Mexican company NW Universe. The companies will market Radiancy’s no!no! hair-removal devices at 200 selected supermarkets throughout Mexico. Radiancy estimates that over 50,000 devices will be sold in 2005, and another 150,000 in 2006. The deal will generate an estimated $11 million.
Founded in 1998, Yavne-based Radiancy develops medical devices. The company has four main types of applications: hair removal, acne clearance, skin rejuvenation, and psoriasis care. All the company’s products are based on a combination of heat rays and light rays, and all are non-invasive skin treatments.
Radiancy sells its devices to doctors and beauty salons in over 50 countries, mostly through local distributors, but also directly through its branches in the US, Singapore, and Spain. Radiancy has 80 employees.
NW Universe specializes in marketing and distributing health and beauty products in Mexico, Central America, and the Caribbean Islands.
Radiancy chairman Dan Almagor said today, “The Mexican market is responding very enthusiastically to the device. We have received estimates that over 250,000 devices will be sold in the next eighteen months.”
The signing of the distribution agreement is good news for a company that has suffered from severe internal disputes in recent months. Radiancy was expected to be another success story for investors Shlomo Ben-Haim and Lewis Pell. An IPO in London was scheduled eighteen months ago, but the company called it off in order to prepare for a larger IPO on Nasdaq, which was also eventually canceled. Radiancy’s financial results, published together with its announcement of its planned IPO in London, show that its revenue grew from $7.8 million in 2001 to $15.4 million in 2002 and $21.6 million in 2003. The company also earned a $3.3 million net profit in 2003.
In recent months, the firing of two of the company’s founders, Dr. Zion Azar and Pinchas Shalev was followed by the filing of a series claims and counter-claims in Israel and US courts.
Published by Globes [online] - www.globes.co.il - on September 26, 2005