By-Health acquires Life-Space Group from Mr Alan Messer and Ms Irene Messer

By-Health of China is acquiring family-owned Life-Space, one of Australia’s largest probiotics companies, for an implied enterprise value of up to AUD 690.00 million (USD million), according to media reports.

The Shenzhen-listed dietary supplements manufacturer had a market capitalisation of CNY 24.84 billion yesterday, before shares suspended from trading pending an announcement regarding a significant matter.

Life-Space was founded by Alan and Irene Messer to make and sell probiotics suitable from pregnancy and for baby care, all the way through to 60+ years of age.

The Melbourne-based company’s products include liquid supplements and a multivitamin tablet range under the various banners of Elmore Oil, Healthy Essentials, and Corams.

It launched its Life-Space brand in China in 2014 and over the fiscal 2015-16 period recorded a 350.0 per cent sales growth in the country.

As at May 2017, the group claimed it was now the largest Australian probiotics brand in the People’s Republic, and was planning to enter key markets through Asia, Europe and North America.

Cited by Australia China Business Review, managing director Ben McHarg said exponential growth over the last five years prompted Life-Space to review its ownership structure to support continued domestic and international expansion.

Meanwhile, By-Health’s chief executive, Lin Zhicheng, told the publication the acquisition was an important step for large-scale development.

“Currently the probiotics market is one of the fastest growing market segments,” Lin added.

The Nikkei cited a statement from Baker McKenzie, which is advising on the deal, as saying the acquisition is subject to shareholder and regulatory approvals.

When contacted by the newspaper, a person at By-Health’s investor relations department declined to comment while calls to the main line were not answered.

© Zephus Ltd

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