Key Points:
• Star Combo will acquire Austoyou Group Pty Ltd and Koala Mall Pty Ltd (“acquisitions”)
• Austoyou is a fast-growing Australian based E-commerce platform with over 5,000 high demand product lines selling direct to Chinese consumers (B2C)
• Purchase price of A$10m representing a 10x multiple on FY18 Net Profit After Tax (NPAT) of A$1.0m.
• Management expects NPAT of the acquired businesses to grow in excess of 20% in the FY19 year from FY18 revenue of approximately $17 million
• Acquired B2C channel will complement Star Combo’s existing B2B channels into China. Existing Star Combo products will be sold on the Austoyou platform over time.
• E-commerce platform now positions Star Combo as a vertically integrated brand owner, manufacturer and distributor of vitamins and health supplements into China.
• 2018 Chinese market for vitamins and supplements over US$5.2 billion, Australian trusted products in demand
Sydney, Australia. Star Combo Pharma Limited (ASX:S66, Star Combo, the Company) is pleased to announce that it has entered into an agreement to acquire the businesses of Koala Mall Pty Ltd and Austoyou Group Pty Ltd for A$10 million. This acquisition represents the completion of a due diligence period on the Ausway Group of companies as flagged in the Company’s announcement on 8 August 2018.
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