Primavera, Shanghai Pharma to buy Australia's Vitaco

The buyers will pay A$2.25 per share for all outstanding shares in Vitaco, valuing the company at 14.7x EBITDA for the 2016 financial year, according to a filing. This price represents a 27.8% premium to Vitaco's August 3 closing price. Shanghai Pharma will own 60% of the company, with Primavera holding 40% through its second US dollar-denominated fund, which is understood to nearing a final close.

Vitaco was formed in 2007 by Next Capital, which had separately acquired two New Zealand companies, health food and supplements provider Healtheries New Zealand and sports nutrition specialist Nutra-Life Health & Fitness, a year earlier. Vitaco listed on the Australian Securities Exchange in September 2015, raising A$231 million.

Next still holds a 15.3% stake in the company, which will exit as part of the acquisition by Shanghai Pharma and Primavera.

Vitaco generated revenue of A$212.9 million for the 12 months ended June 2016, up 23.5% year-on-year. Pro forma EBITDA rose 15.6% to A$23.9 million while net profit came to A$13.1 million. Drug producer Shanghai Pharma reported revenue of RMB105.5 billion ($15.9 billion) in 2015 and is listed in Shanghai and Hong Kong.

The deal still requires shareholder and regulatory approval.

 

 

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• Topics
• Greater China
• Australasia
• Buyouts
• Healthcare
• Primavera
• China
• Australia