Huons N’s acquisition to bolster exports
Huons N, which is known for its menopause support probiotics Menolacto and is actively expanding into Europe and South East Asia, has acquired health functional food manufacturer Biorosette Co., Ltd which is also based in South Korea.
Biorosette is a specialized Original Equipment Manufacturing (OEM) and Original Design Manufacturing (ODM) of health functional food set up in 1986.
It has worked with other South Korean health functional food brands such as CJ Wellcare, Daesang Wellife, and Kyung Nam Pharm. Health supplements are regulated as health functional food (HFF) by the Ministry of Food and Drug Safety (MFDS) in South Korea.
Huons N said that the acquisition would help the company respond more flexibly to the increasing export volumes and enhance its market responsiveness and growth pace.
It currently exports to 14 countries, including Japan which it entered in June via e-commerce platform Qoo10. Examples of products sold in Japan include its MeritC Liposome-vitaminC Triple Shot, MeritC Multi Vitamin Mineral Gummy, White Glutathione 250, Elastin Collagen, and Psyllium Seed Husk Dietary Fiber.
The OEM / ODM firm, on the other hand, can manufacture six types of formulations and nine types of packaging. It is also developing a functional ingredient based on hawthorn berry extract and bamboo extract derived from bamboo sheath.
If approved as an individually recognized functional food ingredient by the MFDS, it will enjoy a six-year-long exclusive rights for manufacturing and sales.
“I am thrilled to strengthen our next phase of growth through this acquisition of Biorosette with strong manufacturing capabilities. Equipped with manufacturing infrastructure’s capability to respond quickly to customer needs, we will strive to expand our reach into the domestic and global markets,” said Huons N’s CEO Son Dong-Chul.
The company did not disclose the exact amount of the acquisition but said it has acquired 250 thousand shares in Biorosette, incorporating it as a wholly-owned subsidiary.
Prior to this, Huons N’s most recent acquisition is the women’s health brand ‘Mysitol’ in May this year.
Comvita to find funding alternatives
On the other hand, Florenz’s proposed plan to acquire fellow New Zealand manuka honey maker Comvita failed to gain approval from the majority of the latter’s shareholders.
Florenz Limited first announced in August its plan to acquire and privatize Comvita Limited, which is currently listed on the New Zealand Exchange. The proposed acquisition had an equity value of approximately $56m and an enterprise value of approximately $119m.
All of Florenz’s associates voted in favor of the acquisition, while all other shareholders, including those from Comvita, saw 54.29% of the polls voted in favor, with 45.66% against, and the remaining had abstained from voting.
For the acquisition proposal to be approved, at least 75% of the votes cast by shareholders in Florenz, Comvita must be in favor, and more than 50% of the total number of votes attached to all Comvita shares must be voted in favor.
Comvita previously said that the acquisition and privatization process could accelerate capital return to shareholders, while giving the company capital strength to continue its business amid market headwinds in recent years.
In FY24, the company’s annual revenue was down 12.7% to NZD$204.3m (US$127.8m), while net profit plummeted 142.6% to a loss of NZD$5.6m (US$3.5m).
Comvita Chair, Bridget Coates, said that with shareholders having determined the outcome of the Scheme, the Board is continuing to advance alternative options, including a recapitalization process.
“The Board has been working with its advisers and banking partners to evaluate a range of funding options as part of its contingency planning. Our current intention is to assess options to recapitalize the company. This work is progressing with urgency and discipline to secure a solution that stabilizes the business, positions it to grow again, and reduces ongoing risk to shareholders,” she said.
Comvita will hold its annual shareholders meeting on December 17.
