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, part of the Chinese hair care market.
The transaction values C-BONS Hair Care at €317 million (approximately HK$3.5 billion) on a cash- and debt-free basis. Beiersdorf will, upon closing, pay €269.45 million (approximately HK$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 €47.55 million (approximately HK$526 million).
Upon completion, Mr. Wu Yong-nan, currently president of C-Bons Hair Care, will become CEO of the new company. Mr. Werner Brettschneider, Beiersdorf’s newly appointed president for greater China, shall become the chairman of the board of the new entity.