Diplomat Cosmetics was the only remaining bidder for them.
Sources inform ''Globes'' that Heinz Israel Ltd. is about to sell its businesses to Diplomat Cosmetics, the only remaining bidder for them. Diplomat Cosmetics will acquire Heinz Foodline Marketing Ltd., which markets Heinz food brands in Israel, including ketchup, mayonnaise and mustards. This is Diplomat Cosmetics’ first entry into the food industry. It plans to lease Heinz Israel’s logistics center, which is part of the deal, to an external entity.
Heinz (NYSE:HNZ) decided to sell its interests in Israel in the wake of the Remedia affair. Heinz Remedia Industries Ltd. was sold to businessman Yuval Levy for NIS 1.5 million separately from Heinz’s other activities. Heinz was due to sell Heinz Israel to Shemen Industries Ltd. (TASE;SHMN) for NIS 15 million, but Shemen Industries withdrew from the deal
Heinz and Diplomatic Cosmetics are on the verge of closing a deal, which is reportedly worth over NIS 10 million. Diplomatic Cosmetics is Israel’s largest distributor of consumer products, with a turnover of $160 million. The company distributes Procter and Gamble’s (NYSE: PG) products in Israel, and recently invested $6 million in a 14,000-sq.m. logistics center in Airport City.
Published by Globes [online], Israel business news - www.globes.co.il - on July 26, 2005