Australian forays boost share price of Ebos

By ELLEN READ

Christchurch-based health products supplier Ebos Group has bought another Australian business and is set to announce a further transtasman deal this week.

Ebos announced yesterday that it had bought Melbourne company Stelmara Medical for an undisclosed sum.

Shareholders in the company, which has expanded into Australia in the past few years, reacted positively to the news, boosting the share price by 10c to $3.60.

Chief executive Mark Waller said Ebos already had businesses in Sydney and Brisbane and had been trying to find a third site for some time.

All three supply the general practitioner market, although the company also provides some aged-care, hospital, specialist and retail consumer products.

"It completes the jigsaw puzzle for us on the eastern seaboard of wanting that national coverage, because from Melbourne we can do South Australia and Tasmania," Waller said.

He would not reveal the price but said the Stelmara buy, along with the forthcoming deal, would cost a combined A$7 million. Ebos will pay cash with no capital raising required.

The pending deal, also in Melbourne, is a specialist hospital supplier for all Australia.

The premises of the two would be combined but they would be run as separate businesses, Waller said. Their combined turnover is A$13-$14 million a year.

"We're working on a number of other things, too, and waiting for the outcome of the existing health support business with the Auckland [District Health Board]," Waller said.

He is confident of renewing the contract. An announcement will be made in the middle of next month.

The company is also looking at other deals larger than those announced this week.

"At the moment it's New Zealand and Australia. There are plenty of opportunities there," Waller said.

He said Ebos was looking to go international with sales of its herbal lice remedy.

"Our international forays will be more along the lines of specific products where we own a brand and want to sell it internationally.

"As far as the operational base goes, there's plenty to do in this part of the world."