Ahava buys US distributor

The company intends to open a chain of branded stores in the US.

Sources inform ''Globes'' that Dead Sea cosmetic product company Dead Sea Laboratories Ltd. has acquired 50% of its US distributor NYAG for $4 million. Ahava will also receive the controlling interest in its distributor, and reportedly intends to open a chain of branded stores in the US.

NYAG is a distribution company focusing principally on the accessorize product market. It began distributing Ahava products in the US three years ago and set up a separate division for this purpose, which Ahava is now taking over directly.

Ahava has been exporting to the US for a decade. It has annual sales in the US of $20 million, 70% of it through leading US retail chains.

Ahava CEO Yaacov Ellis said the revenue from the new division would be reinvested in the expansion of the company's business in the US market.

Published by Globes [online], Israel business news - www.globes-online.com - on November 9, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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