(Yicai Global) March 30 -- A unit of Chinese conglomerate Fosun International has acquired a 68 percent stake in US herbal cosmetics brand Wei Beauty for an undisclosed sum to complement its personal care portfolio after buying Israel's Ahava a few years ago.
Fosun aims to quintuple Wei Beauty's sales in China to more than CNY1 billion (USD141 million) over five years, the Shanghai-based company said in a statement on March 27, without disclosing any financial details. Wei Beauty's sales in China exceeded CNY200 million (USD28.2 million) last year.
Founded by Brian Wei in Pennsylvania in the 1990s, Wei Beauty makes skincare products based on traditional Chinese medicine that are sold in 11 countries and regions, including the US, Germany, and China where they can be found in Sephora stores.
The purchase will improve Fosun's positioning in the cosmetics field, Chairman Guo Guangchang said in the statement.
Fosun told Yicai Global that it is optimistic about the growth potential of China's high-end beauty sector. The country has become the world's second-largest beauty market and upscale brands surpass mid-range ones with an expected annual growth rate of up to 30 percent.
In 2016, Fosun International acquired Dead Sea mineral skincare brand Ahava. Fosun Cosmetics Group has gained rich e-commerce experience since then, it added.
Editor: Emmi Laine