Israeli fashion group Castro (TASE: CAST) is expanding to the US. The company has reported that it has received exclusive rights to the French cosmetics brand Yves Rocher in the US. In the first stage, Castro will invest NIS 25 million in the venture subject to approval by a shareholders meeting.
Castro-Hoodies Group CEO Ron Rotter will be appointed CEO of US activities and Yves Rocher US. Rotter will be replaced as CEO by Yair Ohayon who has served as Castro's CFO for the past five years. He will become the first-ever Castro CEO who is not a member of the Rotter family. Ron Rotter has served as CEO since 2020, replacing his parents and founders of the company Gabi and Etti Rotter. Gabi Rotter still serves as chairman and is very active in the management of the group.
US subsidiary
The investment will be used to set up a venture in the US including an ecommerce website, stores and a technology development center in Israel, which will support the venture using AI adapted to the Yves Rocher brand and the needs of customers in the US.
The US subsidiary will be called Radixis. Castro will hold a 80.2% stake in the new company with strategic partner Avi Goldfinger, who will manage the technological development center holding a 9.9% stake and Ron Rotter holding a 9.9% stake, with a reverse vesting mechanism applying to the shares for three years.
Published by Globes, Israel business news - en.globes.co.il - on February 28, 2024.
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