Teddy Sagi Group buys WOW cosmetics

Shay Tangi Photo: Revital Mickalis

The WOW cosmetics chain is the largest in Israel in the low-cost sector, with 67 branches and 500 employees.

Teddy Sagi Group is to buy Israel's WOW cosmetics chain for NIS 55 million, sources close to the deal have informed "Globes." The acquisition will be carried out by Fiver, the Teddy Sagi Group's British-based retail and ecommerce division.

WOW Cosmetics is one of the largest low-cost cosmetics chains in Israel. The chain, which has brought to Israel a range of low-cost cosmetics, was founded in 2005, and today has 67 branches throughout the country, and has about 500 employees. The deal also includes WOW's logistics center in Or Akiva. WOW is owned by Ofir Karp (73%), Eyal Schwartz (20%), and Lee Aflalo (7%).

LAYAM CEO Shay Tangi has also been appointed as Fiver's CEO, and it is understood that the WOW acquisition will be signed tomorrow.

WOW was founded in order to offer customers quality cosmetics products at attractive prices that are affordable for all. The company's branches sell a range of makeup products, makeup accessories, products for skincare and haircare, pedicure and manicure products, hygiene products, as well as other accessories (mainly jewelry). All products are safe for use and approved by Israel's Ministry of Health and comply with European cosmetics standards. This standard allows the company to market products throughout Europe.

WOW has been able to successfully sell quality cosmetics products at discount prices by eliminating middlemen in the supply chain. The company imports, designs, and develops all of its products. During the years that it has been operating, WOW has acquired two rival companies in Israel, and merged activities under its own operations by changing brands to the WOW brand.

WOW is one of two leading companies in the low-cost cosmetics field in Israel. In addition to the Israeli market, WOW has international operations and its products are marketed to hundreds of cosmetics stores in South Africa.

Fiver operates mainly in the British market and operates E5P, one of the leading fashion websites in the UK, with five million visitors each month. In the near future, these operations are expected to expand to other countries in Europe.

Fiver CEO Shay Tangi said, "We are always looking for interesting brands that can enhance our electronic commerce experience. We found WOW to be one of the interesting chains operating in Israel. The chain has excellent products, and has gained popularity among Israeli consumers because of its excellent value prices. It is our intention of course to enhance and strengthen the chain in Israel, as well as in addition we plan to bring the benefits of WOW to other countries. In the first stage, we will do this with our ecommerce operations, so that we will market WOW online in European countries."

Published by Globes, Israel business news - en.globes.co.il - on September 25, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Shay Tangi Photo: Revital Mickalis
Shay Tangi Photo: Revital Mickalis
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