EBOS Group Ltd has entered into an agreement to acquire a leading New Zealand natural health products business, Red Seal, for NZ$80 million ($73.2 million), substantially bolstering the group’s position in the healthcare consumer products market.
EBOS Group CEO Patrick Davies says the acquisition will be immediately earnings-per-share accretive and will be funded from the group’s existing debt facilities.
Red Seal is a leader in key segments of the natural health products market including vitamins, minerals and supplements, herbal teas, non-fluoride toothpastes and functional foods, including molasses and Manuka honey.
The business has a strong domestic presence in New Zealand and has achieved significant growth in export markets, particularly China, due to an expanding brand profile and trust among local consumers for natural health products sourced from New Zealand and Australia.
“Red Seal is an exciting addition to our Endeavour Consumer Health division, which has an extensive range of health products sold in multiple channels across Australia and New Zealand,” Mr Davies said.
“We’re confident we can continue to expand the sales of Red Seal products in multiple markets and we’re delighted to have reached agreement to acquire this high-quality business. This transaction is part of our ongoing strategic expansion and diversification into areas where we believe there are attractive long-term opportunities for our group.”
The agreement to acquire Red Seal includes certain conditions. The transaction is expected to be completed on November 30.