Blackmores announces its net profit and its decision to acquire Catalent Australia Holding Pty Limited, owner of a CM manufacturing facility
Blackmores will acquire 100% of the issued share capital of Catalent Australia Holding Pty Limited from Catalent Inc. on a cash free and debt free basis, Blackmores has announced.
The total acquisition cost is expected to be AUD $43.2 million, subject to agreed adjustments.
Completion is expected to occur on or before 31 October 2019 and is expected to be fully debt-funded.
“This is a highly strategic acquisition for Blackmores which will give us increased control and agility to respond to changing market conditions while also helping us ‘future proof’ our Asian business,” said Richard Henfrey, Blackmores Chief Executive Officer.
“We know this plant extremely well having partnered with this first class facility for more than 30 years and the manufacturing capacity of the site and expertise of the team are a natural fit, both culturally and technically, for our growing business,” he said.
“The research and development capabilities will bolster our existing program and will enable us to accelerate new product innovation by giving us the ability to test and launch new products across the Blackmores Group.
“A significant number of the product registrations for Blackmores’ range across Asia are associated with the Catalent Braeside facility, so this acquisition gives us increased control and certainty about the future of these products at a time when there is increasing importance on product registrations across the region,” said Mr Henfrey.
Blackmores announced that net sales for the nine months to 31 March were $434 million, up 8.5% compared to the prior corresponding period.
Net profit after tax was $52 million, up 19.3% compared to the prior corresponding period.
“We made solid market share gains in Australia over the last quarter and remain the clear number one brand in Australia in both total market and domestic sales,” said Richard Henfrey.
“This was a solid result notwithstanding the impact of supply challenges over the period.”
Supply constraints are expected to ease in the fourth quarter, he said.
Blackmores also announced the appointment of a new non-executive director, Jackie McArthur.
Ms McArthur, who was 2016 Telstra NSW Businesswoman of the year, brings more than 20 years of experience at board and executive levels in supply chain, logistics and operations management.