CK Life Sciences snaps up another key Australian asset
CK Life Sciences International said it will buy Nuturf Australia, the country's largest supplier of turf management products and services, for $41.9 million in cash.
The company controls about 25 per cent of the Australian turf management product market, said CK Life, the biotechnology arm of Cheung Kong (Holdings).
CK Life said it would benefit from Nuturf's customer base and extensive distribution network, which covers all Australian states but the Northern Territory, and that the deal would enable it to commercialise its eco-fertiliser.
'Nuturf's knowledge and understanding of the market will be invaluable to our penetration of the global turf product market,' it said.
Nuturf Australia's net asset value is estimated at $5.62 million. For the year to July 31, 2004, it made $10.73 million net profit after a net loss of $99,000 a year before.
Nuturf will be CK Life's third acquisition this year after it bought Australia's second-largest supplier of home garden products, Envirogreen for $108 million and Quebec health product provider Developpement Sante Naturelle for $347 million. Both Australian deals are due for completion this month.
'The contribution from these two companies will provide the group with a steady revenue and profit stream from August onwards,' said chief executive Kam Hing-lam. 'Acquisition is a major expansion strategy for the group. 'We are now in discussion with a number of potential companies.'