Osem Investments Ltd. (TASE: OSEM), controlled by Nestle (SWX:NESN) has acquired 51% of infant formula maker Materna Ltd. from Maabarot Products Ltd. (TASE: MABR) for NIS 249 million, reflecting a company value of NIS 488 million. Materna accounts for 55% of Maabarot’s activity.
Materna has the largest share of Israel’s infant formula market, and Osem has refrained from marketing Nestle brand formula in Israel. Osem CEO Gazi Kaplan has always said, however, that the company would enter the market, either through an acquisition or by launching a new product.
Osem and Materna will establish a joint venture that will develop, manufacture, sell, market, and distribute infant formula, and Nestle and Materna will also establish a joint venture that will handle the brand for joint activity.
Osem has a market cap of NIS 4.78 billion. The share rose 3% in morning trading. Maabarot has a market cap of NIS 447 million.
Published by Globes [online], Israel business news - www.globes.co.il - on October 23, 2007
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