Gaon in talks to sell Ahava stake


Dead Sea cosmetics company Ahava last month reported it is moving manufacturing out of the West Bank.

B. Gaon Holdings Ltd. (TASE: GAON) yesterday reported that it was holding preliminary talks for the sale of its share in cosmetics manufacturer Ahava Dead Sea Laboratories, controlled by Kibbutz Mitzpe Shalem.

Gaon Holdings said, "In view of the preliminary contacts, no format for any agreement has been reached."

Gaon Holdings owns 16% of Ahava, in which the Livnat family and Shamrock Holdings are also shareholders. Gaon Holdings is controlled by Viola Private Equity, whose founder and general partner, Harel Beit-On, is chairman of Gaon Holdings.

Ahava manufactures and sells skin-care cosmetic products made from Dead Sea minerals and mud. The company's 2014 sales totaled NIS 183 million, and it had 225 employees as of the end of last year.

Last month, "Globes" revealed that the company was planning to transfer part of its production activity from Kibbutz Mitzpe Shalem, which is in the West Bank, to the nearby Tamar regional council inside the Green Line. NIS 10 million will be invested in building the new plant.

Gaon Holdings reported on Monday a deal in which its sub-subsidiary, Peanuts and Cotton Marketing, was selling its holdings in Field Produce. Gaon Holdings indirectly holds about 21% of Peanuts and Cotton Marketing's capital, which has an 84% stake in Field Produce.

Peanuts and Cotton Marketing and another shareholder in Field Produce signed an agreement in principle with a third party, which will buy Field Produce from them. The total proceeds for Peanuts and Cotton Marketing from the deal is estimated at NIS 87 million, subject to adjustments.

Published by Globes [online], Israel business news - - on July 15, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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