Pharma group targets China with $10m acquisition of e-commerce players
Written on the 8 February 2019 by Business News Australia
Star Combo is positioning itself as a major exporter of Australian pharmaceutical products with its $10 million spending spree on China focused e-commerce businesses.
The Sydney-based manufacturer and distributor of health, pharmaceutical and beauty products has acquired the businesses of Koala Mall and Austoyou Group.
Both businesses have a direct line to the Chinese market as e-commerce platforms which Star Combo hopes will get them into the US$5.2 billion Chinese vitamin and supplement market.
Austoyou is an Australia-China e-commerce platform that offers over 5000 high-demand product lines directly to Chinese health product consumers.
With Australian health products in high demand in China, thanks to their perception as being of high quality, Star Combo is betting on this investment to pay off in droves.
"The addition of the Austoyou e-commerce platform is viewed by the company as a transformational acquisition that will accelerate growth plans with a significant near-term increase in revenue," says Star Combo in its release to the ASX.
Star Combo says its acquisition of Koala Mall will enable the company to showcase its range of products at a number of stores in Sydney.
The company, listed in mid-2018 and founded in 2004, has its products stocked in 450 Terry White and Symbion chemists in Australia and China.
Shares in Star Combo spiked yesterday and hit a high of $0.84 this morning, but have since dived 14 per cent to $0.73 per share at 11.37am AEDT.
Business News Australia
Author: Business News Australia