SYDNEY - Australian vitamin supplement company Blooms closed a deal with Goubuli Group, that will see the Chinese company invest A$60 million ($46 million) which Goubuli hopes will boost its synergies within the booming sector.

The Tianjin-based company plans to import Blooms' products, and provide distribution throughout China for the Australian vitamin maker, co-branding with their successful "Tianjing Tong Ren Tang" range.

Jason Li, CEO of Yatsen Associates which helped broker the deal, told the Australian Financial Review that for Goubuli the choice to invest was simple.

This was because 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 and amortization) which shows the continued strength of the sector," Li said.

"There was very considerable interest from Chinese financial and strategic investors which all want 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.

He added that the vitamin sector was one with great opportunities for cooperation 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.

Xinhua