CHINA: Beiersdorf AG announced that it has, through its Austrian 100% affiliate Beiersdorf CEE Holding GmbH, entered into an agreement with C-Bons Holding (International) Limited, Hong Kong, and Global Source Investments Limited, British Virgin Islands to acquire an 85% stake in C-Bons Hair Care, one of the leading players in the Chinese hair care market.
The transaction values C-Bons Hair Care at $3.5 billion on a cash- and debt-free basis. Beiersdorf will, upon closing, pay $3 billion for the 85% stake in C-Bons Hair Care. The closing of the transaction is subject to customary closing conditions and is expected before the end of 2007.
Global Source will maintain a 15% stake in the business for an interim period of at least two years after closing and will continue to support and provide continuity to the business during this period. After this period, Beiersdorf has the option to acquire the remaining 15% stake of the business for a minimum price of $526 million.
Beiersdorf has successfully penetrated the Chinese skin care market, with its Nivea and Eucerin brands, achieving high double digit annual sales growth in recent years. More info: www.beiersdorf.com.