- Star Combo Pharma will purchase 51 per cent of Australian Inature Organic Care
- Inature distributes cosmetic, healthcare and natural beauty products to more than 3000 mother and baby retail outlets in China
- Star Combo will produce Inature’s consumer health products in its manufacturing facilities in Sydney
- This acquisition is set to give the company access to a fast-growing China market which is expected to be worth over $628 billion by 2020
- Star Combo is down 7.69 per cent on the Australian Securities Exchange and is trading at 48 cents apiece
Star Combo Pharma will purchase 51 per cent of Australian Inature Organic Care.
Inature distributes cosmetic, healthcare and natural beauty products to more than 3000 mother and baby retail outlets in China. Its products focus on pre-natal, post-natal and infant consumer health markets.
The acquisition provides Star Combo with access to new consumer health products in the pre-natal, post-natal and infant markets which are seeing enormous growth.
Inature will bring an established in-country team of sales and marketing staff and networks that Star Combo can leverage for its full brand portfolio.
Star Combo Chairman Richard Allely is pleased with the deal.
“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 ($300k upfront payment) there exists the potential for additional payments, subject to significant earn-out provisions,” Richard said.
“We expect the acquisition to be immediately earnings accretive,” he added.
Star Combo will manufacture Inature’s consumer health products in its manufacturing facilities in Sydney.
Inature has built a strong sales pipeline and reputation in China for products aimed at infant and maternal care.
These markets are expected to be worth over $628 billion (3 trillion yuan) in 2020 according to iResearch data.
Currently, annual baby product sales alone are currently estimated at $14.43 billion (69 billion yuan).
Inature has been operating for 15 years and uses carefully sources native fruit extracts and products from Queensland organic suppliers.
Data research group iResearch believes there will be an infant boom over the next five years from the current number of 171 million children under the age of six.
Star Combo is down 7.69 per cent and shares are trading at 48 cents apiece at 12:29 pm AEDT.