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|| Chinese investors acquired Australian vitamin maker Vitaco for $239 million

china au vitaminChinese private equity firm Primavera Capital and Shanghai Pharmaceuticals has acquired Australian vitamins maker Vitaco Holdings for $239 million.

Established in 2007 and employing 400, Vitaco is an Australian supplement manufacturer, distributing in 30 countries and producing 1 billion products every year. Primavera Capital Group is a private equity firm investing in companies in China and around the world. It was founded in 2010 and is based in Beijing with offices in Shanghai and Hong Kong. (According to Reuters, this buyout comes less than a year after Hong Kong-listed Biostime International Holdings bought Australian vitamin maker Swisse Wellness for around $1 billion in 2015).

Primavera Capital is listed in the Chinese Investors Directory with the code SIJ26.

More details follows from Reuters

A Chinese group led by drugmaker Shanghai Pharmaceuticals Holding Co Ltd and private equity firm Primavera Capital has agreed to buy Australian vitamins maker Vitaco Holdings for A$313.7 million ($239 million).

Vitaco said in a statement on Thursday the Chinese group would buy all of the firm at a valuation of A$2.25 per share, a 28 percent premium to their closing price on Wednesday, less than a year after it listed shares in Sydney at A$2.10 apiece.

Vitaco said the deal would help it grow in the world's second-largest economy, where vitamins and dietary supplements business is expected to surge to around $20 billion by 2018, according to Euromonitor. That growth is luring firms to look for local tie-ups or tap the market for traditional remedies.

Shares in Vitaco, which owns brands such as Nutra-Life, Wagner and Abundant Earth, has seen the stock plunge over 40 percent from a high of A$3.23 last November, in the month after it listed.

Vitaco's chairman Greg Richards said in a statement the deal was attractive for shareholders given the "ongoing volatile macroeconomic conditions and regulatory uncertainty in China". While China is a major destination for Australian goods, Beijing's move last April to raise tariffs and tighten controls on some imports clouded the business outlook for some players.

Shanghai Pharma said in a filing on Thursday it would take a 60 percent stake of Vitaco for around 938 million yuan ($141 million) as part of a take-private deal with Primavera. It said the deal would combine its own networks and sales channels in China with Vitaco's high-quality healthcare brands.

The Vitaco buyout comes less than a year after Hong Kong-listed Biostime International Holdings bought larger Australian vitamin maker Swisse Wellness for around $1 billion in 2015 to build on strong Chinese demand.

(c) Reuters more details here http://www.reuters.com/article/vitaco-ma-shanghai-pharma-idUSL3N1AL167



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