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After firing 118 employees and closing down its factory in Yeruham, Emilia Cosmetics parent company Emilia Development (OFG) Ltd. (TASE: EMDV), controlled by Oded Feller, reports that it has sold the land and building for a profit of NIS 35 million.
Until last year Emilia Cosmetics (formerly Careline) manufactured cosmetics, soap and other toiletry products. Sources inform “Globes’ that the buyer was Padagis Israel, which produces pharmaceuticals 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 buying the 37,000 square meters of land and buildings for NIS 52 million.
Emilia Cosmetics closing Yeruham factory
The decision to liquidate Amelia’s cosmetics activity was made last year due to ongoing losses, both in Israel and in the US, which, according to Emilia, resulted from increased competition in the field, competing imports and the removal of barriers, along with the increase in the prices of raw materials and production inputs. As part of the closure process last year, Amelia sold its intellectual property assets in Israel and abroad (except in the US) used for the production and sale of its products for NIS 16 million.
Emilia’s financial reports show that in 2021 and 2022, it incurred a cumulative losses of NIS 52 million from the cosmetics business, including losses due to expenses related to its closure. Even earlier, in 2019, Emilia had considered closing the factory in Yeruham but then the company managed to improve gross profitability of its cosmetics activity due to the Covid pandemic, thanks to the sale of disinfectant and hygiene products.
Published by Globes, Israel business news – en.globes.co.il – on July 14, 2023.
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