BKL 3.89% $80.96 blackmores limited

Just as the Chinese are buying up the shelves of Blackmores...

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    Just as the Chinese are buying up the shelves of Blackmores product from Chemists they will likley swoop our ASX and but up Blackmore Shares.

    See article below from the Australian Financial Review 12th of April

    Analysts say the $2.1 billion vitamins giant Blackmores has obvious corporate appeal to Chinese private equity firms who've watched its strong growth, but any buyout would need the blessing of 24 per cent shareholder Marcus Blackmore.
    Blackmores is the last big independent Australian vitamins company following three buyouts in the past two-and-a-half years by Chinese companies of Swisse, Vitaco and Nature's Care.
    Nature's Care, the maker of Healthy Care, one of the biggest sellers in the vitamins aisles of big box retailer Chemist Warehouse, had a change of control on Wednesday when two Chinese private equity firms acquired a majority stake from Sydney's Wu family in a transaction which valued the company at almost $800 million.
    JP Morgan analyst Russell Gill said it was yet another example of a Chinese-based company acquiring Australian brands and "attracted by the category growth", particularly through export and cross-border e-commerce channels into China.
    http://www.copyright link/content/dam/images/g/u/7/i/j/i/image.imgtype.afrArticleInline.620x0.png/1487062913320.jpg
    Mr Gill expects Blackmores shares to reach $150 by the end of calendar 2018. He said the corporate deals in the sector would help keep valuations at robust levels.


    "We believe corporate activity will continue to underpin industry valuations," he said.
    Belinda Moore, analyst at stockbroking house Morgans, said the high-quality Blackmores brands and its dominant market share would have it in the sights of potential Chinese buyers, but the 24 per cent strategic stake held by former chairman Marcus Blackmore makes it harder for any deal to proceed.
    "Obviously Blackmores has corporate appeal. It has high-quality brands and a very good market position," Ms Moore said.


    Read more: http://www.copyright link/business/...-headed-for-150-20180412-h0ynu5#ixzz5Eo1MVKM2
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