Mediland Pharm Ltd (ASX:MPH) has entered into a conditional business sales agreement to acquire Ian’s Health Lounge, a complimentary business with established e-commerce platforms and retail franchise stores in China.
After establishing in Australia in 2012, the business later launched its first online platform in China in 2015 with the aim of promoting quality baby and nutritional products to Chinese retail customers.
The business has successfully created a model of setting up online platforms in China and has grown to incorporate one direct shop in Australia, six franchise shops in China, three WeChat accounts and four e-commerce platforms with operating entities and employees in Australia and China.
Online channel to promote brand
Mediland Pharm managing director Yesh Mudaliar said: “One of our growth strategies is to promote our brand to our customers when they return home.
“We know that an online channel is a great way to keep in contact with our customers providing them with a platform to continue purchasing products from Mediland Pharm.
“Once the business transaction has been finalised, we will be able to quickly inject product range onto the online platform and start promoting Mediland to current customers and work towards promoting our online channel to customers that are visiting our stores from China.”
It is expected the transaction will be completed by the end of June subject to usual and ordinary conditions, including the board being satisfied with the due diligence on the business.
The business’ products target the health and well-being market.