Ebos Group, the animal care and health products company, will expand its involvement with natural health products after agreeing to buy New Zealand vitamin and herbal tea maker Red Seal for $80 million.
The acquisition will be funded from existing debt facilities and Red Seal would add to per-share earnings immediately, said Ebos chief executive Patrick Davies.
"This transaction is part of our ongoing strategic expansion and diversification into areas where we believe there are attractive long term opportunities for our group," Davies said. Red Seal will add to Ebos' Endeavour Consumer Health division, which sells a range of branded natural health products in Australia and New Zealand, he said.
The transaction is expected to be completed on November 30, subject to conditions that Ebos didn't specify.
Red Seal's products include vitamins, minerals and supplements, herbal teas, non-fluoride toothpastes and functional foods, including molasses and manuka honey. It has a strong presence in New Zealand and has experienced significant growth in export markets, particularly China.
