THE WHAT? Star Combo has announced that it has entered into an agreement to acquire a 51 percent stake in Australian Inature Organic Care.
THE DETAILS Under the deal, Star Combo will manufacture Inature’s consumer health products in its manufacturing facilities located in Sydney, Australia, resulting in further cost savings.
“This is a strategic acquisition that opens new sales and distribution channels in China for our Australian-made products and while the initial cost is relatively small (AU$300k upfront payment) there exists the potential for additional payments, subject to significant earn out provisions,” Chairman of Star Combo, Richard Allely said. “We expect the acquisition to be immediately earnings accretive.”
THE WHY? The acquisition provides Star Combo with access to new consumer health products in the pre-natal, post-natal and infant markets as well as an established distribution network of 3,000 retail outlets in China which Star Combo can leverage for its full brand portfolio.