Upon completion, Hong Kong-based Mason Financial and Wattle Health will own 75% and 5% equity interest in Blend and Pack respectively, and the original shareholders of Blend and Pack will continue holding the remaining 20% stake.
Mason Financial said the investment, and the alliance with Wattle Health, establishes a vertically integrated supply and distribution value chain exporting Australian dairy products to the Chinese market.
Following its investment in Aiyingdao, the largest mother-infant-children products retailer in Southern and Eastern China, Mason Financial said it intends to take advantage of synergistic and complementary direct investment opportunities in the mother-infant-children sector.
Alex Ko, joint chairman and CEO of Mason Financial, said Blend and Pack is one of eight Australian infant formula manufacturers accredited by CNCA (Certification and Accreditation Administration of the People's Republic of China) to produce infant formula for export to the Chinese market and is one of the few independent infant formula manufacturers in Australia.
“We believe the increasing demand for paediatric nutrition products from Mainland China market due to the recently announced two-child policy will translate into immense growth opportunity for Blend and Pack,” Ko said.
Full range of products
Joel Chang, group COO of Mason Financial, said the partnership with Wattle Health will not be limited to infant formula, but will also extend to a full range of health care and mother-child care products.
Andrew Grant, founder and managing director of Blend and Pack, said Mason Financial's geographic footprint significantly strengthens Blend and Pack’s position in developing markets.
Blend and Pack was established in 2007 and is involved in blending, packaging and distribution services to customers in the infant formula and nutritional products market.
It operates from a facility in Hallam, Victoria, and has annual capacity of approximately 20m cans of infant formula.