Tomson Pei-kin buys Life-Space. for nearly A $700m (photo from Life-Space `s official website)
Chinese health care giant By-Health bought Melbourne-based probiotics producer Life-Space for nearly A $700m, the Australian Financial Review reported.
Australian health-care companies have been acquired one after another, the latest one. These Australian companies export vitamins and other health products to the world`s fastest-growing consumer market.
Life-Space, a family-owned business, sells probiotics health products to China through its Evolution Health company. On Wednesday, Life-Space finalized a deal with Tomson Pekin, a Shenzhen-listed company.
Alan (Alan) and Eileen (Irene Messer), founding shareholders of Life-Space, began looking for buyers 12 months ago before they retired. The deal marks the latest acquisition by China of Australian health care companies. At the end of 2015, China Healthcare (Health and Happiness) bought Australian health care brand Swisse. for A $1.7 billion.
Mike Hagger, Managing Director of Life-Space. (photo by Australian Financial Review)
McHagger (Ben McHarg), general manager of Life-Space, said the new owner of the company intends to retain the manufacturing business and current management of Melbourne headquarters. Life-Space uses e-commerce platforms such as Alibaba and the network of "purchasing agents". Sell probiotics products to China.
It is reported that Tomson Bejian is currently selling products through the physical store network, they have more than 100000 pharmacies in China.
"they know the Chinese market, and other companies that have been interested in us do not know the Chinese market. We will work with them to expand our offline sales in China and expand all the other businesses they want us to do and manage. " McHagger said.
Annual Life-Space revenues have jumped from A $14 million in 2005 to about A $71 million at the end of last year, according to sources. The company sells products through the Australian pharmacy chain Chemist Warehouse.
In the past five years, China`s demand for baby milk powder, vitamins and dietary supplements from Australia has soared. In view of this, Chinese investment in Australian health has jumped from zero to A $5.5 billion over the past three years, according to KPMG (KPMG).
