Amazon announced Tuesday that it is buying an Israeli company that makes collagen peptidergic peptides, which have been used to treat collagen-related issues, in a deal worth $3.5 billion.
The deal, which also includes stock, is expected to close by the end of this year.
The announcement comes as the online retail giant struggles to attract new customers, and is expected at least in part because of a crackdown on online sales of products containing animal products in the United States.
Amazon, which has said it has plans to open an additional 500 U.S. stores in the coming years, has seen its sales shrink in recent years as it has struggled to expand internationally.
The company’s stock has fallen more than 50% over the past two years.
The deal was announced in an e-mailed statement from Amazon Chief Executive Jeff Bezos, who called it a milestone in the evolution of Amazon’s leadership.
“We’re excited to join forces with one of Israel’s leading companies to build on Amazon’s longstanding partnership with a leading leader in collagen peptidoglycan treatment,” Bezos said.
“We’ve always said that the best way to make our customers happier is to offer them something that will make a difference in their lives.
This is exactly that kind of partnership, and I look forward to working with Jeff to help us continue to improve our lives.”
The deal with Israeli company, the Elg, is the first major deal between the two companies.
Amazon and the ElG have been collaborating for more than a decade on research and development for peptides.
In January, Amazon announced a partnership with the Elgar company, which develops collagen peptido-like products.
The new Elg-Amazon partnership will expand the company’s research and technology capabilities in the field of collagen peptiding, and could potentially provide a platform for Amazon to further develop the treatment.
The company has been a leader in the collagen peptida field.
The collagen peptidal peptide is a protein found in collagen and other materials.
The protein has been shown to be an effective treatment for multiple conditions including rheumatoid arthritis, rheumatic heart disease, and arthritis.
Amazon has said its collagen peptids could reduce the need for antibiotics in people with the autoimmune disorder rheumatism.
The Elg was founded in 1993 by Israel’s former President Shimon Peres and was later sold to a private equity group that has been buying up companies in the area.
Amazon bought Elg in 2012 for $6.7 billion.