Blackmores will acquire the 100% of the issued share
capital of BioCeuticals. The purchase price is a cash
payment up to a maximum of AUD $40m and will be fully
debt-funded from additional banking facilities. An
amount of $38.4m is payable on completion and an additional
payment of up to $1.6m will be payable soon after
completion if certain conditions are met in relation to
earnings for FY12. The purchase price is also subject
to a post completion working capital adjustment
mechanism.
In the year to June 2011 BioCeuticals delivered $38m in
invoiced sales and earned $4.6m earnings before income tax,
depreciation and amortisation.
"Blackmores has an 80 year heritage in research and product
development and is the number one brand in natural health
in Australia," said Blackmores' Chief Executive Officer, Ms
Christine Holgate. "BioCeuticals has earned strong
credibility in the Practitioner channel where they lead the
market and are renowned for their quality, highly
efficacious products."
"The combination of Blackmores and BioCeuticals gives us a
powerhouse of over 100 qualified healthcare professionals
in the Blackmores Group, including naturopaths. It
gives us greater depth of expertise and affirms our
position as the clear market leader in natural health and
the largest natural health company in Australia."
The BioCeuticals range, brand and strategy are
complementary to those of Blackmores. There is strong
philosophical alignment between both companies.
"It is our intention to run BioCeuticals and its existing
brands as a stand-alone business, utilising the resources
and knowledge within both companies to improve our ability
to service our customers," said Ms Holgate.
"The acquisition is a key part of Blackmores' strategy and
brings greater channel diversity to our business within the
category we operate. The practitioner market is
growing and profitable with qualified healthcare
professionals having an important role in providing total
health solutions and advice to consumers."
"Importantly, it is our customers who stand to benefit from
our increased investment in research, innovation and
healthcare professional education."
BioCeuticals was originally founded in 1993 by Michael Hall
and his two sons, and develops and markets a range of
nutritional supplements to integrative medicine
practitioners, natural health professionals, pharmacists
and health food stores primarily in Australia and New
Zealand.
"We feel this is both the right move and a smart move,"
said FIT-BioCeuticals Chief Executive Officer, Sean
Hall. "Individually these companies have demonstrated
strong leadership positions in their markets, both
companies focus on nurturing an innovative 'family' culture
- so together we can accomplish more, ultimately for the
benefit of all Australians."
FIT-BioCeuticals' main brands are BioCeuticals® and
IsoWhey®, with a number of smaller brands including a
biotechnology and research arm. BioCeuticals® has become a
brand of choice for many leading clinical researchers,
clinicians and colleges. IsoWhey® is a weight
management range available in leading pharmacies and health
food stores.
The transaction will involve an acquisition of all
BioCeuticals shares, free of debt. It incorporates
the transfer of BioCeuticals' brand names, product
portfolio and an experienced team of over 100 staff.
The business will continue to operate from its current
Alexandria location in Sydney.
"The transaction will be fully debt-funded from additional
facilities agreed with our banking partner. Blackmores has
always had a conservative approach to debt management and
has a strong balance sheet. Including this transaction,
Blackmores' debt will remain comfortably within our debt
targets."
The transaction is currently scheduled for completion on 5
July 2012.
ENDS
For further information, please contact:
Sally Townsend
Head of Communications
Blackmores Ltd.
M: 0419 225 781
Christine Holgate
Chief Executive Officer
Blackmores Ltd.
P: 61 2 9910 5186
Recommend:
