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Sandy Li

Deal lifts worldwide presence to 13 brands and 4,500 stores

Hutchison Whampoa's retail and manufacturing division, AS Watson,  has exercised an earlier acquired  right to take  a 40 per cent stake in a German health and beauty chain from the former owner of Kruidvat Group, the De Rijcke family.

When Watson  bought  Netherlands-based  Kruidvat  for Euro1.3 billion  (HK$12.3 billion) in 2002, it   also reserved the right to  take  a 40 per cent stake in Rossmann (Germany) before  October this year.

Watson  group managing director Ian Wade said: 'Watson  decided to purchase a stake in Rossmann (Germany) because the market prospects are exceptional. Germany is the largest health and beauty market in Europe, and offers huge potential for further development.'

A Watson spokeswoman  declined to disclose Rossmann's market share, but said the market for Germany's health and beauty sector amounted to  Euro24 billion.

The 32-year-old  company founded by Dirk Rossmann has more than 1,100 stores throughout Germany, Poland, Hungary and the Czech Republic.

Turnover   was more than Euro1.22 billion  last year, making it one of the top three players in Germany. For the six months to June, the chain  generated sales of Euro650 million.

Watson  said Rossmann would maintain its management over day-to-day operations in Germany, while Watson  would have representatives on the board and contribute to all strategic decisions.

After the deal, Watson  said it would operate 13 retail brands worldwide, with  more than 4,500 stores.

The announcement comes a month after the group bought a  pharmacy chain in Malaysia for M$14 million (HK$28.7 million).

In June, the group also acquired Drogas, an 83-outlet chain of health and beauty stores in Latvia and Lithuania.



Watson exercises right to German chain