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Probiotec drops some weight with $6.75M Celebrity Slim sale

Consumer Discretionary
ASX:PBP      MCAP $232.5M
28 August 2019 00:35 (AEST)

Probiotec has entered into an agreement with Global Brands Australia to sell the Celebrity Slim brand, including all intellectual property and business assets.

Under the sale agreement, Global Brands Australia will pay $6.75 million in cash to Probiotec to buy Celebrity Slim. So far, a $1.5 million cash deposit has been paid.

Global Brands Australia is a beauty business which helps beauty brands and retailers search for innovative concepts and new, inspirational products.

Probiotec is an Australian manufacturer, packer and distributor of prescription and over-the-counter pharmaceuticals, medicines and health products. It owns three manufacturing facilities across Australia and distributes products both domestically and internationally.

The company has a diverse portfolio of brands. These include PharmaOnline.com.au, which is an online store that delivers products such as Redbak Protein, Black Widow Nutrition, The Biggest Loser, David Craig Skin Care, Milton Baby Care, Skin Basics, and many more.

And of course, up until recently, the Celebrity Slim brand, which is a popular health and weight loss program that promotes shakes and other meal replacements.

Probiotec Managing Director Wes Stringer claims the company wants to focus on its core business and the recent acquisition of Australian Blister Sealing (ABS).

“The sale of Celebrity Slim successfully concludes the company’s divestment of its branded product portfolio. This transaction allows Probiotec to focus solely on our core manufacturing business, including our recent acquisition of ABS in July,” Wes said.

Probiotec bought ABS just last month for a base amount of $23 million and an additional cash consideration of $5 million.

Wes stated the acquisition was a strategic move by the company to increase its manufacturing capabilities, scale and reach within the pharmaceutical industry.

The sale of Celebrity Slim is expected to take place on September 30 2019.

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