Australian consumer goods business Jatenergy is buying a controlling interest in local wholesaler, distributor and exporter Green Forest International.
It has told the Australian Stock Exchange (ASX) that it will acquire 50% of the shares on issue in Green Forest for a cash consideration of AUD2m (US$1.5m) and that it will contribute another AUD2m in working capital.
Go deeper with GlobalData
Jatenergy will have two out of the four directors on Green Forest’s board but will also be able to choose the chairman who has the casting vote.
Jatenergy, which in March took a majority stake in local milk powder business Golden Koala Group, specialises in exporting goods to China, as does Green Forest.
Brands exported by Sydney-based Green Forest include milk powders such as A2 and Danone’s Aptamil.
It is a major supplier to Chinese TaoBao and Wechat channels and other online platforms.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe company sells to more than 50 shops and pharmacies in Hong Kong and more than 200 gift shops, duty free stores and daigou warehouses in Australia.
Jatenbergy executive director Wilton Yao said: “The acquisition provides an immediate boost to JAT’s turnover and profitability. More importantly, our businesses are highly complementary.
“Green Forest is very strong in Hong Kong and in Australian diagou and duty-free stores and they bring a large portfolio of Australian and international brands to the group.”
Yao said it is Jatenergy’s strategy to further develop its FMCG distribution and sales channel.
