Hofseth BioCare ASA (“HBC”), today announces the completion of a purchase of 34 % stake in Hong Kong and China based finished products distributor Atlantic Delights Ltd (“AD”). Over the last five years, AD has established an impressive 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 % stake in AD and with that ownership, obtains an import license and distribution license in China which would otherwise be very difficult to attain. 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,” says CEO Roger Hofseth of Hofseth BioCare.
The acquisition comes at an exciting time for HBC with Brilliant Salmon Oil™ in particular having phenomenal success in multiple markets and already beating internal company expectations for 2020 with multiple platform launches in Europe and the US and through several distributors covering most of North America. Brilliant Salmon Oil is now the best-selling finished product from HBC.
The last 3 years, AD has a sales CAGR of 330 % 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.
For further information, please contact:
Roger Hofseth, CEO of Hofseth BioCare ASA
Phone: +47 951 47 941
E-mail: rh@hofseth-as.no
About Hofseth BioCare ASA:
HBC is a Norwegian biotech company that develops high-value ingredients and finished products. The ingredients are in various stages of discovery and preclinical development in collaboration with multiple clinics and university research labs in several countries. Lead preclinical and clinical candidates are in development toward treatment for iron-deficiency anemia, Gastro-Intestinal Inflammation (NEC/IBS/UC), prediabetes, age-related sarcopenia and osteoarthritis.
The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC can preserve the quality of lipids, proteins and calcium from fresh salmon off-cuts. Hofseth BioCare's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich, Chicago, Menlo Park and Tokyo.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act