Korres SA Natural Products on Wednesday announced a strategic equity agreement with Morgan Stanley North Haven Private Equity Asia IV, LP and Profex Inc -a distribution company of cosmetic products in China.

Under the terms of the agreement, the Korres family will keep 30 pct of the company with the two new investors holding 70 pct. Following completion of the deal, the new owners will launch a public offer to buy the outstanding equity of the company at a price of 5.08 euros per share.

George Korrres, founder of the company, speaking to reporters during press conference, said "2018 will be a landmark year for the Group as we move forward with an excellent alliance that will offer us the possibility of further growth. A strategic agreement which is the result of our group's constant effort in the last 21 years. The aim of our agreement with Morgan Stanley and Profex is to expand in international markets and to establish the brand globally, beyond Europe, North and Latin America where we have already established strong pressence. The values and philosophy of Korres remain the same, we continue focusing on Greek herbs, on a network of partnership with growers, on product innovation, on scientific research".

More specifically, George Korres and members of the family have agreed to transfer to Nissos Holdings CY Ltd -company fully owned by George Korres- shares representing 30 pct of Korres equity capital (George Korres 24 pct and other family members around 6.0 pct) for the equal number of shares and equity stake in Nissos. NHPEA (North Haven Private Equity Asia IV,LP) -through NHPEA Maiden Holding BV- and Profex Inc have agreed to purchase 56 pct and 14 pct, respectively in Nissos through a share capital increase scheme paying 48.3 million euros in cash.

Nissos has agreed to purchase 52.3 pct of Korres' equity capital at a purchase price of 5.08 euros per share.

Completion of the deal is subject to approval by creditor banks. Following completion of the deal, Nissos will own more than 82 pct of Korres equity capital and will proceed with a public offer to buy the remaining shares of the company.

Profex and Korres will forge an agreement on exclusive distribution and brand use in China, Hong Kong and Macau.

Following completion of the public offer, the new investors will proceed with a share capital increase plan worth 10 million euros in Nissos to fund the future growth of Korres Group of companies.