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Chinese investment group makes an offer for Nature’s Care
Posted on Friday, 13 April 2018 07:48
A consortium of Chinese investors has agreed to acquire a majority stake in Australian vitamin company Nature’s Care, expanding the target’s presence in the Asian market as it pursues high-end customers.
Financial terms of the transaction were not disclosed; however, recent media reports cited industry sources as saying that the deal values the entire business at AUD 800.00 million (USD 620.35 million).
This is the latest investment by a Chinese company in global nutrition assets and involves China Jianyin Investment, one of its subsidiaries and private equity fund Tamar Alliance taking an unknown majority stake in Nature’s Care.
The target is billed as Australia’s third largest vitamin company and manufactures supplements and skin care products, with the Sydney-based Wu family retaining a minority holding, two sources told Reuters.
Closing is still awaiting regulatory approvals and is slated for the second half of 2018.
Nature’s Care owns brands such as Healthy Care, Nature’s Care Pro, Royal, VitAustralia and Mei Mei Organic across the dietary supplements, skin care, infant and child care markets.
Chief executive of the company Tom Coleman said the group already had plans to expand in China but with new owners in the country it would add distribution channels and networks to help accelerate its growth.
Nature’s Care has about 7.0 per cent of the Australian vitamins market share, according to the Australian Financial Review, behind Swisse and Blackmores, which each have around 20.0 per cent.
This is the largest deal announced in the chemical manufacturing industry since the start of 2018, Zephyr, the M&A database published by Bureau van Dijk, shows.
There have been 26 such transactions signed off this year, of which the second biggest involved Australia By Saint acquiring Life-Space Group for AUD 690.00 million.
Hexion's additives technology group business in Australia, Incitec Pivot and Viralytics, among others, were also targeted.
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