Vitamin manufacturer Star Combo Pharma (ASX: S66) has outlaid $60 million to buy natural health, food and beauty business, Bio-E.
Bio-E is a highly profitable marketer however it does not have the manufacturing footprint of Star Combo.
The companies have “complementary skill sets (through) combining Star Combo’s R&D and manufacturing capabilities with Bio-E’s marketing and distribution capabilities”, the companies said in a statement.
Star Combo chairman Richard Alley said the acquisition was transformational for the company.
“It accelerates our transition from a contract manufacturing business to a fast growth, high margin business.”
Star Combo will undertake a $51 million capital raising to fund the purchase.
Sydney-based Star Combo’s Living Healthy brand is sold in Australia and China,
The company and Bio-E collaborated on the development of a Sleep Diet Pill which has booked $10 million in sales since May.
Melbourne-based Bio-E sells fermented and probiotic drinks, pure Australian honey, natural skincare and health supplements.
Picture: Star Combo Pharma
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