Chinese agricultural producer Dongfam Modern (ASX:DFM) has announced its snapped up 70 per cent of Australian health supplements business Bio Health Pharmaceuticals.
The cash consideration for the transaction is $18 million, or over 5 times the company’s expected earnings (EBIT) for 2019.
The company says the deal will diversify its business into the health supplements market.
Dongfam says the strong Australian management team will stay with the business.
Shares in Dongfam (ASX:DFM) closed down 0.47 per cent to $1.07 on Friday