Just Life to buy supplements provider About Health for $17m

Just LIfe chief executive Tony Falkenstein. Photo / NZ Herald

Just Life Group (formerly Just Water) said it had agreed to acquire dietary supplements provider About Health for $17 million.

The purchase will be funded through a combination of new and existing debt facilities, and an equity raising.

The acquisition is unconditional and is expected to complete by the end of this month.

Just Life, which supplies water coolers, drinking water and filters for home and office use, said About Health is a leading provider of natural dietary supplements in New Zealand, including well-known brands Lester's Oil and Res-V Ultimate.

The acquisition of About Health would be immediately accretive to the group earnings, Just Life said.

"The acquisition of About Health will accelerate the growth of the Company and drive shareholder value," chief executive Tony Falkenstein said.

The acquisition will be fully funded through a combination of debt and equity comprising:
• $15m of new debt facilities provided by Bank of New Zealand.
• a non-underwritten 1 for 14 renounceable rights offer to raise up to about $4.5m at an issue price of $0.70 per share
• and available headroom under existing debt facilities with Bank of New Zealand.

Just Life Group's 70 per cent shareholder, The Harvard Group, was supportive of the acquisition and equity raising.

Earlier this week, Just Life Group said it had acquired 60 per cent of the business of Designer Tanks, which supplies water tanks for Kiwi homes, for an undisclosed sum.

Shares in Just Life last traded at 96c, having gained 102.1 per cent over the last 12 months for a market cap of $87m.