The company Korres SA Natural Products (the Company) announces that on June 11th 2008, completed the acquisition of 50% of the limited liability Cosmetic Products Distribution company District Two Cosmetics Distribution GmbH (District Two), its exclusive local distributor of its products in the German market, at the price of euros 750.000.
District Two, based in Munich, was founded in 2003 and is a growing distribution company to more than 380 known retail customers. Its sales for 2007 reached euros 1,6 million, with the products of Korres and Kings & Queens participating in more than 70% of the total.
The acquisition of this distribution company by the Company, integrates into the Group's strategy to focus its interest on specific countries, including among these Germany, in order to achieve an even more substantial position in this market. It is important to mention that Germany is characterised by strong consumption of natural cosmetic products which offer significant growth opportunities for the Group.
In Particular, the Company, through District Two, has presence in the German market in well known selective and semi-selective distribution chains, relating indicative of Douglas and KaDeWe while at the same time it has opened a Korres store in Frankfurt.
With this move, the company expects to strategic cooperation with the local distributor, that will result to the further development of the two brands Korres S.A. Natural Products and Kings & Queens in that market, strengthening its promotional actions and penetrating further through new partnerships, to new points of semi-selective and selective distribution, which consist the main distribution channels of the group products.