Chinese Companies Buy Australian Vitamin Maker For US$239 Million

  • Friday, 05 August 2016 09:55
  • Published in Business News
  • Read 969 times

Chinese drugmaker Shanghai Pharmaceuticals and private equity firm Primavera Capital have agreed to buy Australian vitamin maker Vitaco for A$313.7 million (US$239 million).

Vitaco said in a statement that the Chinese firms would buy all of the company at a valuation of A$2.25 per share, a 28 percent premium to their closing price on Wednesday, 3 August 2016.

The Australian vitamin firm said the deal would help it grow in China, the world’s second-largest economy, where vitamins and dietary supplements business is expected to surge to around US$20 billion by 2018, according to Euromonitor.

Vitaco owns brands such as Nutra-Life, Wagner, and Abundant Earth. It has seen stocks plunge over 40 percent from a high of A$3.23 last November, after a month it was listed at A$2.10 apiece, reported Deal Street Asia.

Vitaco’s chairman Greg Richards said the deal was attractive for shareholders due to “ongoing volatile macroeconomic conditions and regulatory uncertainty in China”.

China is a major destination for Australian products, however Beijing’s move last April to raise tariffs and tighten controls on certain imports have dampened the business outlook for certain industries.

Shanghai Pharmaceuticals said it would take a 60 percent stake of Vitaco for 938 million yuan (US$141 million), as part of a deal with Primavera.

APFI About Us

Asia Pacific Food Industry (APFI) is Asia’s leading trade magazine for the food and beverage industry. Established in 1985, APFI is the first BPA-audited magazine and the publication of choice for professionals throughout the industry with its editorial coverage on the latest research, innovative technologies, health and nutrition trends, and market reports.

Asia Pacific Food Industry is published by Eastern Trade Media Pte Ltd. The company owns numerous trade and consumer titles, including Asia Pacific Metalworking Equipment News and Industrial Automation Asia.


View Now