Sources inform “Globes” that an agreement in principle has been reached for the sale of the Michael (Mickey) Dorsman’s General Nutrition Companies (GNC) vitamin chain Israel franchise (GNC Israel) to pharmaceutical and toiletries company Dr. Fischer.
The parties will sign the sales contract in the next few days, subject to the approval of GNC International. GNC International tried to negotiate the sale of GNC Israel to Super-Pharm. Super-Pharm, however, was interested only in GNC products, not the stores, and the negotiations failed.
This is not Dr. Fischer’s first retail venture. In addition to its manufacturing activity, the company also operates the Israeli Body Shop chain of stores (not affiliated with The Body Shop global chain). Fischer Pharmaceuticals chairman Dr. Eli Fischer plans to merge the Body Shop and the GNC Israel stores. GNC Israel CEO Yoram Sasson is slated to manage the merged company.
The GNC Israel acquisition fits in with Dr. Fischer’s strategy of entering the food supplements field. Growth rates in the food supplement market have dropped sharply in recent years, from a 40% annual growth rate five years ago to 6%.
GNC Israel has 16 stores and an estimated NIS 30 million annual turnover, while the local Body Shop chain has 22 stores and a NIS 20 million turnover. The Dr. Fischer group’s total turnover is NIS 50 million.
GNC is the world’s largest retailer of vitamins, minerals, and food supplements. Since 1999, GNC has been a fully owned subsidiary of Numico Royal. GNC has 3,000 products, sold in 5,500 stores in 26 countries, including the US.
GNC has operated in Israel since 1997, and also markets its products in 40 pharmacies around Israel.
Published by Globes [online] - www.globes.co.il - on November 11, 2002