Johnson & Johnson buys the Chinese Dabao

The giant of the pharmaceutical products and "Johnsons hygiene "Johnson and has final the acquirement of Dabao, a very popular cosmetic mark in China, without changing its local sign however, return Thursday Beijing News.

Johnson & Johnson buys the Chinese Dabao

This operation makes of the society of hair oils of Beijing a subsidiary to 100% of the American pharmaceutical giant, whose seat is in New Jersey.

Johnson Johnson and didn’t reveal the financial modes of this acquirement, whose cost could rise, according to analysts, to 2.3 billions yuan (336.7 million dollars). In February 2007 Dabaos had estimated besides to 2.3 billion yuans the sum to pay out for the set of its capital.

Created in 1985, Dabao prospered thanks to a set of leading products, of which milk and the cream of SOD beauty, and of other products of products for skin of which solar screens, of perfumes and cleansers.

The fate of the staff of Dabao constituted a key question in the transaction, a third of a few 1200 employees of Dabao being disabled.

In accordance with a disposition of the transaction, the employees who are not seen themselves granting or refused a new station in the new company will remain employees in the Sanlu factory of Beijing, society mother of Dabao, and will be able to continue to benefit from the rights and social protection of which they made the object previously, indicated Hey Yan, director of the public relations of "Johnson "Johnson and.

To "become a new member of "Johnson "Johnson and will offer to Dabao a big opportunity to promote its mark", it has affirmed.

"Dabao won’t abandon its mark", underlined Wang Wenbin, director of the ministerial office of Dabao.

Under the effect of the influx of the big marks international comestiques, Dabao, that had reached its apogee in the years 1990, saw its turnover stagnating. Its sales passed from 780 million yuans in 2005 to 676 million yuans in 2006, reveal the official statistics.

China became a pole of attraction for the big international cosmetic societies, that try to widen their part of market by the acquirement of local societies.


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