Hong Kong-listed giant buys top Australian vitamin company
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E-mail Xinhua, September 18, 2015
Hong Kong-listed Biostime has purchased leading Australian vitamin company Swisse Wellness, it was confirmed on Friday.
The 1.67-billion-Australian dollar deal will see the company's CEO Radek Sali continue to lead the company which will remain based in Melbourne. He will also take up a board position with Biostime.
Biostime will take an 83-percent interest in the Australian company which has become an international success story and uses celebrities such as Nicole Kidman to promote its range of products.
Biostime said it would bring significant China-wide distribution, e-commerce capability and a well-established customer loyalty program to the partnership.
Luo Fei, chief executive and chairman of Biostime, said Swisse had strong appeal to Chinese consumers.
"The acquisition of Swisse is closely aligned with our strategy of expanding our portfolio and entering new markets as we seek to become an all-round nutrition and care expert for the entire family," he said in a statement on Friday.
Sali said there was enormous opportunities in markets such as China where demand was very strong.
The owners of the company, Stephen Ring, Sali and former managing director Michael Saba, will, along with existing shareholders -- including chairman Trevor O'Hoy -- retain the minority stake in the business.
Ring's father Kevin founded the company in the 1960s.
"As partners I am confident that we can achieve great things as we seek to become the leading global wellness brand," Ring said.
Swisse has been known in the market for its aggressive marketing strategy, which took celebrity endorsement to a level not seen before in the Australian market.
On top of hiring celebrities to promote it, Swisse is a significant sponsor of sporting events in Australia. Endi
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