Biostime acquires Swisse
September 18, 2015
Hong Kong-listed Biostime and vitamin maker Swisse Wellness announced last night they have reached a binding heads of agreement with Biostime taking an 83% interest in Swisse with an investment of A$1.67 billion.
The founding Ring family and management team led by chief executive Radek Sali are expected to keep a 15 - 20% stake in the business, the AFR reports.
Biostime, founded in 1999, is one of the leading premium infant formula, baby food and baby care producers in Asia with more than 200 sales offices across China and revenues of RMB 4,732m (A$934m) in FY14.
Headquartered in Guangzhou, China, Biostime employs more than 3,300 people.
Biostime will enhance China-wide distribution, increase e-commerce capability and will bring a well-established customer loyalty program to the partnership, Swisse said.
Swisse Wellness ceo Radek Sali will continue to lead Swisse Wellness, and alongside the Executive team and existing shareholders, will remain invested in the business; he will also join the Biostime Board.
Swisse’s founding shareholder Stephen Ring said, “I am incredibly proud to have been part of Swisse’s journey so far.
“The strength of the business is testament to the hard work, passion and energy of the entire Swisse team and I thank them for their ongoing commitment to the business.”
Biostime ceo Lui Fei released a statement saying, “The Swisse brand is synonymous with Australia’s clean, green and healthy lifestyle and the quality and premium positioning of the brand.
“Swisse has strong appeal to Chinese consumers and is considered a leading VHMS brand.”
The escalating demand from China has also driven a five-fold jump in the share price of Swisse’s listed peer Blackmores over the past 12 months.
With Australia considered a core market for Swisse Wellness, the company will remain headquartered in Melbourne, Sali said.
The above article was sent to subscribers in Pharmacy Daily's issue from 18 Sep 15To see the full newsletter, see the embedded issue below or CLICK HERE to download Pharmacy Daily from 18 Sep 15