Blackmores buys Global
May 6, 2016
AUSTRALIA'S leading natural
health company, Blackmores has
announced the acquisition of
Global Therapeutics, Australia’s
leading provider of retail Chinese
herbal medicine formulations
through the brands Fusion and
Oriental Botanicals.
Under the arrangement,
Blackmores acquires 100% of
Global Therapeutics for A$23m
subject to customary adjustments.
The acquisition will be debtfunded,
the company said and is
expected to be earnings accretive in
the first full year under Blackmores’
ownership.
In the last 12 months Global
Therapeutics reported $20m in
invoiced sales and $3.0m earnings
before income tax, depreciation
and amortisation.
Originally established in Byron
Bay in 1999 as Fusion Health by
naturopath and medical herbalist
Paul Keogh and natural health
industry veteran Geoff Teasel,
Global Therapeutics’ product range
is based on the combination of
incorporating herbal extracts used
in China for more than 2,000 years
with those validated by modern
science.
The Fusion range has a strong
position in health food stores, while
its sister range, Oriental Botanicals,
is the leading brand in this category
in pharmacy.
In purchasing the two brands,
Blackmores also takes on the full
product portfolio and more than
40 staff, making it the number one
provider of natural health products
in Australia while also giving the
company a leadership position in
the health food store channel.
“The acquisition of Global
Therapeutics affirms Blackmores’
position as the leading natural
health company in Australia and
gives us a foothold in the rapidly
growing Chinese herbal medicine
market,” said Blackmores ceo
Christine Holgate.
“The Blackmores Group now has
leading brands in pharmacy, health
food stores and the practitioner
market.
“The acquisition furthers our
strategy of product leadership
and channel diversity within the
category we operate,” she said.
The transaction is scheduled to
complete on 10 May 2016.
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