After firing 118 employees and closing its Yeruham plant, parent company Emilia Cosmetics Emilia Development (OFG) Ltd. (TASE: EMDV), which is controlled by Oded Feller, announced that it sold the land and building at a profit of NIS 35 million. .
Until last year, Emilia Cosmetics (formerly Careline) made cosmetics, soaps, and other toiletry products. Globes sources report that the buyer is Padagis Israel, which produces medicines and healthcare products. The deal has a symbolic dimension, because Padagis, when it was owned by Perrigo, sold the factory to Emilia 14 years ago. In the current deal, Padagis is purchasing 37,000 square meters of land and buildings for NIS 52 million.
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Emilia Cosmetics closes the Yeruham factory
The decision to liquidate Amelia’s cosmetics business was taken last year due to the ongoing losses, both in Israel and the United States, which, according to Amelia, resulted from increased competition in this field, import competition and the removal of barriers, along with an increase in cosmetics. prices of raw materials and production inputs. As part of the closing process last year, Amelia sold her intellectual property assets in Israel and abroad (excluding the US) used to produce and sell her products for NIS 16 million.
Emilia’s financial reports show that in 2021 and 2022, it incurred cumulative losses of NIS 52 million from the cosmetics company, including losses from expenses related to its closure. Even earlier, in 2019, Emilia thought about closing the factory in Yeruham, but then the company was able to improve the overall profitability of the cosmetics business due to the Covid pandemic, thanks to the sale of disinfectants and hygiene products.
Published by Globes, Israel business news – en.globes.co.il – on July 14, 2023.
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