Sources inform “Globes” that the sale of General Nutrition Companies (GNC) Israel franchise to pharmaceutical and toiletries company Dr. Fischer has broken down. Industry sources estimated the sale price at $2 million. GNC, owned by Michael (Mickey) Dorsman, invested an estimated $12 million to set up the Israeli franchise.
GNC Israel stated in response that the negotiations had deadlocked over the price of the sale. Dr. Fischer declined to comment.
Dr. Fischer reportedly withdrew from its plan to acquire GNC Israel after conducting an economic feasibility study that showed that its plan to rehabilitate GNC Israel by merging it with Dr. Fischer subsidiary Body Shop (not affiliated to the international The Body Shop chain) would not work, due to GNC Israel’s heavy losses, and the worsening recession.
Dr. Fischer entered the food supplement sector six months ago with several products. The company set up a nutritional supplement division and announced its intention to become the largest company in the $100 million a year market. Dr. Fischer expects its food supplement sales to reach NIS 20 million after two years.
GNC Israel operates 16 stores with an estimated turnover of NIS 30 million a year. Body Shop operates 22 stores with an estimated turnover of NIS 20 million a year. Dr. Fischer has $50 million in sales a year.
Published by Globes [online] - www.globes.co.il - on February 18, 2003