Natural health giant buys Byron company for $23million
AUSTRALIA'S leading natural health company, Blackmores, has paid $23million for Byron Bay company Global Therapeutics.
Global Therapeutics is one of the country's leading Chinese herbal medicine companies withs its brands Fusion and Oriental Botanicals.
Blackmores made the announcement on the Australian Securities Exchange this morning.
100% take over
"Blackmores will acquire 100% of Global Therapeutics for A$23 million subject to customary adjustments," the company said in its ASX statement.
"The acquisition will be debt-funded and is expected to be earnings accretive in the first full year under Blackmores ownership.
"In the last 12 months Global Therapeutics delivered $20million in invoiced sales and $3million earnings before income tax, depreciation and amortisation.
About Global Therapeutics
Global Therapeutics was established in Byron Bay in 1999 as Fusion Health by naturopath and medical herbalist Paul Keogh and natural health industry veteran Geoff Teasel.
During his 15 years of clinical practice as a naturopath and medical herbalist, Mr Keogh said he "consistently observed that incorporating Chinese herbal extracts into his formulas provided significantly greater therapeutic and health benefits to his patients than formulating with Western herbal extracts alone".
What Blackmores acquired
Blackmores chief executive, Christine Holgate, said the company acquired the two highly respected brand names (Fusion and Oriental Botanicals), full product portfolio and more than 40 staff.
"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," she said.
"The Blackmores Group now has leading brands in pharmacy, health food stores and the practitioner market."
"Through its leading brands Fusion and Oriental Botanicals, Global Therapeutics has established an enviable position in the health food store and pharmacy channels highlighting the growing acceptance of Chinese herbal medical treatments in Australia.
"They have a strong reputation for innovation and a growing product range."