Business
SYDNEY - Australian vitamin supplement company Blooms has closed a deal with Goubuli Group, that will see the Chinese company invest A$60 million ($46 million), in order to enhance their synergy within the booming sector.
The Tianjin based company plans to import their products, and provide distribution throughout China for the Australian vitamin maker, co-branding with their successful "Tianjin Tong Ren Tang" range.
Jason Li, chief executive of Yatsen Associates who helped broker the deal, told the Australian Financial Review, that for Goubuli the choice to invest was simple, as they had "fully integrated operations" that could be utilized for both companies ongoing success.
"The deal was valued at about 11 times their 2016 EBITDA (earnings before interest, tax depreciation, amortisation) which shows the continued strength of the sector," Li said.
"There was very considerable interest from Chinese financial and strategic investors who all wanted authentic, established Australian healthcare brands."
Chinese companies are looking at ways to use modern technology to allow for their "foul tasting" medicines to be turned into easily consumable tablets, according to Li, adding that the vitamin sector is one for great opportunities between Chinese and Australian businesses.
The recent relaxing of the rules concerning pharmaceuticals in the China-Australia Free Trade Agreement, has led to positive outcomes, and increased trade between Australia and China.
