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Aspen reviewing infant formula unit

By Jim Cornall contact

- Last updated on GMT

Aspen's infant formula brand, Alula, recently received approval to be registered for sale in China.
Aspen's infant formula brand, Alula, recently received approval to be registered for sale in China.

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South Africa’s Aspen Pharmacare has announced it is exploring options ‘to enhance the value of its global nutritionals business’ since receiving an unsolicited approach in the third quarter of last year.

Following the recent approval by the China Food and Drug Administration (CFDA) of the registration of Aspen’s infant milk formula brand, Alula, Aspen has decided to formalize its review of strategic options for its nutritionals business.

Options being considered include introducing of a strategic partner.

Aspen’s infant milk formula business has a focus on emerging markets with well-established businesses and leading brands in Asia Pacific, Sub-Saharan Africa and Latin America, and a growing presence in the Middle East and China.

The company, which has infant formula manufacturing sites in South Africa, New Zealand and Mexico, said having generated revenue of R3.2bn ($267m) in FY 2017, its nutritionals business is well positioned to continue benefitting from the strong growth trends experienced by the infant milk formula market in these regions.

Aspen has appointed Centerview Partners UK LLP as financial advisor to assist in the strategic review process.

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