Ausnutria takes over ADP and Ozfarm
Ausnutria’s subsidiary, Ausnutrition Care Pty Ltd., and ADP Group Ltd. struck the deal under which Ausnutria will acquire the entire issued share capital of ADP Holdings for $A10m (US$7.5m) in cash and 13,928,571 Ausnutrition Care Shares.
Spring Choice, another direct wholly-owned subsidiary of Ausnutria, and El Dorado Health Products Technology Pty Ltd., negotiated an A$11m (US$8.2m) deal to acquire 50% of Ozfarm's equity.
Upon the ADP completion, ADP Holdings will be 100% owned by the Ausnutrition Care and the company's interest in Ausnutrition Care will be diluted to 70% from the original 100%.
Acquisition details
Ausnutria will hold all the business of ADP, including the manufacturing, packaging and sale of dairy and milk powder products and related research and development activities, and the existing ADP plant and land in Melbourne, Australia.
At the same time, Ausnutria will also hold 50% of Ozfarm's business, which includes the marketing and distribution of nutrition products and formula milk products in Australia, Singapore and the PRC under the brand name Oz Farm, and the marketing and exports of any other dairy, honey or other food and health care products.
ADP specializes in R&D, manufacturing and packaging of infant formula, functional milk powder and milk powder for the elderly.
Ozfarm is an infant and adult and special medical formula company in Australia. Its own brand, Oz Farm, has a variety of products, including infant formula, pregnant milk, and milk powder for the elderly.
All Ozfarm milk powder products are manufactured by ADP.
Part of strategy
Speaking on the acquisition, Yan Weibin, chairman of Ausnutria, said the acquisitions ensure the execution of corporate development strategies, and form the next step of the company’s "Go Global" strategy.
“It allows us to extend our supply portfolio from the Netherlands and New Zealand to Australia, and complements our existing product portfolio,” Yan said.
"As part of the company's global strategic expansion and an extension of our product line, the acquisition will further cement the recognition of the company's infant formula in Australia, as well as strengthen our nutritional R&D, production, and supply capabilities."
