Melbourne-based, Swisse Wellness, has been sold to Hong Kong baby formula manufacturer, Biostime, for $1.67 billion, with the vitamin maker now set to turn its focus to international expansion.
Headquartered in Guangzhou, China, Biostime secured a 83 per cent interest in the Australian vitamins giant. Biostime is one of the leading premium infant formula, baby food, and baby care producers in Asia with revenues of A$934 million in FY14. Its brands include Biostime, Adimil, BMcare. and Mama100.
Radek Sali, CEO of Swisse Wellness, will continue to lead Swisse Wellness and will join the Biostime Board. The company will also remain headquartered in Melbourne.
Sali said under Biostime’s ownership Swisse will have access to new capital and capability, so that it “can take advantage of multiple growth opportunities, both in Australia and internationally”.
“Right across the world there is a growing demand for high quality wellness products. The VHMS sector in Australia and New Zealand is growing at around seven per cent annually and we see enormous opportunity in markets such as China where the demand fundamentals are very strong and where we have been the number one selling VHMS brand across multiple online platforms for 11 months now,” Sali said.
Luo Fei, CEO and chairman of Biostime said Swisse has strong appeal to Chinese consumers. “The Swisse brand is synonymous with Australia’s clean, green, and healthy lifestyle and the quality and premium positioning of the brand,” Fei said.
“Swisse is a compelling strategic fit for Biostime. Innovation and quality are at the core of both our companies and our customer bases are highly complementary. The acquisition of Swisse is closely aligned with our strategy of expanding our portfolio and entering new markets as we seek to become an all round nutrition and care expert for the entire family. We look forward harnessing our world-class capabilities in distribution, innovation, research and development and customer loyalty, as we work with the team to build on the Swisse legacy.”