Published By : 16 Sep 2015 | Published By : QYRESEARCH
Biostime, a Hong Kong-based investor, has acquired Swisse Vitamins Pty Ltd. in a 3-way bidding contest against Hony Capital, a Chinese equity firm and Shanghai Pharma, a China-based drug producer. Mr. Stephen Ring, the owners of Swisse Wellness, Mr. Radek Sali, the chief executive, and the former managing director, Mr. Michael Saba will be retaining a stake of almost 20% in the company.
Biostime is a company listed in Hong Kong stock exchange, which invests in baby formula and as of now planning to expand its business by venturing into the market for vitamin supplements.
Swisse wellness was founded in 1969 by Mr. Kevin, Mr. Ring’s father. The company followed the marketing strategy of celebrity endorsement and took it to a level, which was never seen before in Australia. It signed a number of well-known faces on a regular interval, including Ms. Nicole Kidman (Oscar-winning actor), Ricky Ponting (Cricketer), Mr. Mark Webber (Racing car driver), and Sonia Kruger (television host) to be its brand ambassadors.
It has also sponsored a series of major sporting events, such as the Formula 1 Grand Prix and Olympic Games, and by 2014, Swisse had spent more than US$95 mn over the past 3 years on strategic marketing.
The earnings of the company before taxes, depreciation, interest, and amortization for the previous financial year (2014-2015) were US$118m, but it is said that on the basis of earnings in the numbers for the previous 2 months, the firm should have been reporting EBITDA of a revenue of US$200m in the FY 2015-2016.
The company had aggressive development plans after it recently signed a deal with PGT, a merger between P&G and Teva.