Sigal Kotler-Levy and Avi Piatok, owners of the Israeli cosmetics brand Sabon, which operates 175 stores worldwide, have announced that a strategic international partner, the French cosmetics corporation Groupe Rocher, is buying control of the company in order to bolster its global capabilities and accelerate its overseas expansion. Financial details of the deal were not disclosed but Groupe Rocher is buying at least 51% of Sabon at a company value estimated at NIS 500 million, meaning that each of the founders will receive NIS 125 million.
Sabon is a privately-owned global bath, body, grooming and home ambiance product brand. It has a strong presence in Israel, Japan and the US, as well as several countries in Europe and Asia. With the completion of the acquisition, Sabon joins Groupe Rocher's extensive global brand portfolio.
After the deal is completed, founders and stakeholders Sigal Kotler-Levy and Avi Piatok will maintain substantial stakes in Sabon and continue leading and controlling the company's development and management, with ambitious growth plans for Sabon over the next few years.
Groupe Rocher, which is expected to buy full control and ownership of Sabon in the future, is a profitable and independent family group (over 97% is owned by the founding Rocher family). The company has established an original positioning for itself and its brands and is responsible for all value chain stages (development, production, logistics, distribution and sales).
Groupe Rocher sales (of eight beauty and lifestyle brands for women, mainly Yves Rocher and Petit Bateau) totaled over €2 billion in 2015. It has a significant presence in 20 countries, mainly in the field of clothing and cosmetics.
Sabon said that this cooperation will enable the company to enjoy Groupe Rocher's internal resources in various fields, as well as its strengths and external relations, all in support of the company's global growth opportunities. The new partners defined joint objectives in various fields, including expansion to new markets, maintaining growth and opening new stores in existing markets - all based on beefing-up existing operations, innovation and more.
Groupe Rocher CEO Bris Rocher said, "Buying the controlling stake in Sabon matches our international growth aspirations. Our extensive knowledge in the company's different fields of operation, together with strong cooperation with Sabon's staff, will help both the company and Groupe Rochet to grow worldwide."
Sabon owners Sigal Kotler-Levy and Avi Piatok said, "Groupe Rocher is an ideal strategic partner for our company, and we are sure that the group's expertise in a wide range of topics will contribute to our professionalism as a company and help Sabon grow faster worldwide."
Groupe Rocher was represented in this deal by Adv. Michelle Liberman and Amit Steinman from the S. Horowitz & Co. law firm while Sabon was represented by Adv. Nir Calderon.
Published by Globes [online], Israel business news - www.globes-online.com - on December 19, 2016
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