New Image buys controlling stake in Living Nature

Tuesday 2nd November 2010

New Image Group, which makes health tonics based on bovine colostrum, has bought a controlling stake in New Zealand-based natural skincare company Living Nature, in a move which is expected to boost production capacity and revenue.

The deal will see Living Nature issue new capital in the company, with the existing shareholders remaining on board, the company said in a statement.

The price of the 50.01% shareholding was not disclosed. However, chairman Graeme Clegg said the purchase will add $6 million to New Image’s annual revenue.

“Living Nature has strong growth potential in both New Zealand and Australia and currently sells its own range through third party distributors in the United Kingdom, United States, Australia and throughout Europe,” Clegg told shareholders at the company’s AGM last week.

“There is also the potential for increased sales in Asia, supported by our own established contacts in the region.”

The deal will provide additional production capacity for New Image’s existing colostrum-based skincare range, Bio-Rejuv. Kerikeri-based Living Nature develops has produced skin care products for more than 20 years, and will continue to sell its own goods through traditional distribution channels.

Its brands will not be sold through New Image’s direct selling channels. New Image shares, which last traded Oct. 27, were unchanged at 30 cents, and have declined 55% in value this year.

Businesswire.co.nz

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