Wet wipes maker Albaad Massuot Yitzhak Ltd. (TASE: ALBA) today acquired private label tampon manufacturer Rostam Ltd. for $33 million from Ehud Pozis and Rami Kluger.
The acquisition was made at a company value of $65 million for Rostam, but since Albaad is also assuming Rostam's debts and will repay a $11 million owners' loan to the company.
Rostam was founded in 1982 and has 400 employees, half the workforce of Albaad. Rostam's 11,000-square meter plant is at the Caesarea industrial zone. The company manufactures private label tampons for Target, Wal-Mart Stores Inc. (NYSE: WMT), pharmacy chains Kroger, CVS, Walgreens Company (NYSE: WAG), and Riteaid in the US, as well as Tesco plc (LSE: TSCO) in the UK, and other European retailers.
Kibbutz Massuot Yitzhak owns 59% of Albaad, whose attempt to take over cosmetics maker Careline Ltd. failed to a NIS 205 million bid by Emilia Development (OFG) Ltd. (TASE:EMDV).
Albaad estimates the global tampon market at $3 billion, with 3.5% annual growth.
Published by Globes [online], Israel business news - www.globes-online.com - on July 19, 2010
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