Listed biotech firm Hofseth BioCare (HBC), today announces the completion of a purchase of 34 per-cent stake in Hong Kong and China based finished products distributor Atlantic Delights (AD).
Over the last five years, AD has established an business of marketing and distributing dietary supplements and nutritional products, based on marine ingredients, in the Asia-Pacific region, including China.
HBC pays approx. USD 700,000 for a 34 per-cent stake in AD, according to a press release.
HBC and AD have already started to merge sales teams to improve and increase distribution reach and achieve other synergies in the Asia Pacific markets. The registration process for the distribution of all other finished products for human nutrition from HBC has also begun and is expected to be approved shortly.
“As our most valued customer in China, we have now taken the opportunity to take direct ownership in their business to help grow their sales and distribution strategy. HBC will now leverage AD’s existing import and distribution licenses that would otherwise be difficult to attain as outsiders, so this gives us a direct option at taking advantage of the phenomenal opportunity with the Chinese pet care market. China is currently our largest market for Brilliant salmon oil, and we expect its growth to accelerate further from here. All other finished products will also be able to be distributed using this domestic entity going forward which represents another untapped opportunity for us,” said CEO Roger Hofseth of Hofseth BioCare.
Brilliant Salmon Oil is now the best-selling finished product from HBC.
“The last three years, AD has a sales CAGR of 330 per-cent and we expect growth to accelerate in the next few years when they join forces with HBC’s existing sales team and as they include other products from HBC into their product range.”