Consulting No. 4000-916-916
Stock code 300146
BY-HEALTH Announces Acquisition of Australia’s Life-space Group at about A$ 670 million
On August 30, 2018, BY-HEALTH Co., Ltd (hereinafter referred to as “BY-HEALTH”), a Chinese leading enterprise in dietary supplements, announced that it has completed the acquisition of the Australian probiotics enterprise Life-Space Group Pty Ltd (hereinafter referred to as LSG) at about A$ 670 million. This acquisition has been approved by all required regulatory bodies and the company’s shareholders’ meetings. Upon completion of the acquisition, BY-HEALTH will take a 100% stake in LSG through its subsidiary Guangzhou BY-HEALTH Baisheng Co., Ltd. and its overseas platform companies as a key step for its global expansion in the field of probiotics.
LSG, one of the largest companies in the Australian probiotic market, mainly produces products under the brand Life-Space, which covers users of all age spans. In 2015, Life-Space entered the Chinese market through cross-border e-commerce and procurement service, and took the lead on China’s e-commerce platform Alibaba (including Tmall and Taobao). It has accumulated good reputation and laid a solid brand basis both in Australia and China, gaining popularity among consumers in the countries.
In recent years, LSG has maintained a trend of steady growth. In 2017, LSG achieved the operating revenue of RMB 473,986,000, an increase of 54.28% over that of 2016. In the first quarter of 2018, LSG achieved the operating revenue of RMB 147,920,900. LSG is mainly engaged in the R&D, production and sales of comprehensive health care products based on probiotic health care food. Its main brand Life-Space provides consumers with about 26 powder and capsule products, helping the digestion and absorption of nutrients for pregnant women, infants, children, adolescents, adults and the elderly, accounting for more than 80% of LSG’s total revenue.
At present, the probiotic market has developed rapidly and prevailed across the world. According to the DuPont Nutrition & Health Special Research on China’s Probiotic Market in 2018, it is estimated that by 2021, China’s probiotic supplements market will achieve the scale of over RMB 30 billion with a compound annual growth rate of 20.6%. If probiotics are considered together with ordinary food, according to the data released by the China Health Care Association, the Chinese probiotic market will reach the scale of RMB 85 billion by 2020. The probiotic product market has become one of the fastest growing segments of the health food market in China.
According to CEO Lin Zhicheng of BY-HEALTH, the acquisition of LSG is an important step toward BY-HEALTH’s layout in the global market segment. Previously, BY-HEALTH announced acquisition of Penta-vite, a child nutrition supplement brand with 70 years of history from Bayer with 21 million Australian dollars. According to analysts, the company, with clear strategic thinking to effectively supplement its product categories through outreach acquisition, is expected to successfully enter the markets of children’s dietary supplements and probiotic market, thus creating a new growth engine of its business.