Dongfam Modern snaps up 70% of Bio Health Pharmaceuticals

Company News

by Anna Napoli

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

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.