Blackmores, a well-known Australian healthcare products manufacturer, issued a statement on May 6 that it intended to acquire 100% stake of Global Therapeutics Pty Ltd., a Chinese herbal medicine producer in Australia, at a price of about 23 million Australian dollars (AUD).
Global Therapeutics was founded in 1999 in Byron Bay, NSW, by Macao herbology expert Paul Keogh and natural health products expert Geoff Teasel. The company draws on both China's traditional herbal manufacturing techniques and modern herbal extraction technologies to produce herbal medicine under the brand names of Fusion and Oriental Botanicals. As a leading Chinese herbal medicine producer in the Australian market, Global Therapeutics Pty Ltd. currently accounts for 80% of herbal medicine sales in the country. Its annual sales have by far reached AUD 20 million with a profit of about AUD 3 million.
According Mrs. Christine Holgate, President of Blackmores, in a market that has grown increasingly receptive to Chinese herbal medicine, Global Therapeutics, with its strength in innovation and expanding portfolio of products, will provide more than a complement to Blackmores’ existing product line. She also noted that: "The AUD 170 billion herbal medicine market is considered by Blackmores to hold great promise considering Australia has 4,700 registered doctors practicing traditional Chinese medicine and the sales network for Chinese herbal medicine has been expanding particularly fast."
With an approach that combines traditional wisdom with modern science and technology, Global Therapeutics has developed a series of best-selling products such as Fusion Health Astra 8, Fusion Health Hair Tonic, Oriental Botanicals and Bioenhanced Curcumin Excel, etc. By the time the merger is completed, Fusion and Oriental Botanicals will operate as two independent brands rather than under the name of Blackmores.
According to media reports, although Fusion and Oriental Botanicals could only be found in the Australian market, Blackmores has planned to shift the focus of its marketing campaign for these two brands to China within the next year or so and ultimately make them an Australian export. Mrs. Christine Holgate pointed out that the despite it was difficult to expand overseas, Blackmores still found the Chinese and the Asian markets full of opportunities. “Acquiring Global Therapeutics allows us to have a better understanding of Chinese medicine and brings us closer to Chinese consumers in Australia, which is essential for us to succeed in the global market, ” said her. Blackmores confirmed in an announcement that after the acquisition a new line of products will be promoted via its existing sales network in Asia.
(Sources: Economic and Commercial Section of Chinese Consulate General in Melbourne, ABC News, Blackmores)
