Nutritional dairy product manufacturer Wattle Health Australia (ASX: WHA) has announced changes to its businesses to speed market penetration for its locally made products.
The organic certified company simultaneously announced a new venture, new arrangements with shareholder Chemist Warehouse, and new production arrangements.
Wattle Health has signed a shareholders agreement with Nouriz (Shanghai) Fine Food Co to form a joint venture to market dairy products into China.
The new venture will own the Australife brand of infant formula and nutritional powders to be manufactured in Wattle’s Corio Bay Dairy Group spray drying facility.
In an agreementy with shareholder, retailer Chemist Warehouse, Wattle will supply its Uganic infant formula and Little Innoscents skin care ranges for sale from March this year.
The company will issue the first tranche of shares to Chemist Warehouse immediately.
Chemist Warehouse is taking up a holding in Wattle as part of a long-term supply agreement.
At the same time Wattle announced changes to its previously publicised agreement to purchase contract infant formula blender and packer, Blend & Pack.
The new arrangements do not change the US$55 million purchase price of Blend & Pack, but involve a smaller upfront payment.
Picture: Wattle Health
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