New Image buys kiwi biotech company Somnaceutics
By Jason Krupp
Dec. 7 (BusinessDesk) - New Image Group, which makes health tonics from bovine colostrum, has continued it acquisition spree with the purchase of biotech company Somnaceutics Ltd.
No price was disclosed for the deal, which includes Somnaceutics' patents and intellectual property on Sleeptime, a natural sleep-enhancing milk product developed in New Zealand by scientist Professor Bob Elliott.
Last month, New Image acquired a controlling stake in skin care company Living Nature, which uses New Zealand bio-active ingredients in its products. Again, no price information was disclosed for the deal, but executive chairman Graeme Clegg said it would add $6 million to New Image's revenue.
“Both acquisitions place New Image in a very strong international competitive position, with a growing portfolio of scientifically-backed, natural products that appeal to sophisticated global consumers,” said Clegg.
Under the terms of the deal Somnaceutics’ former chief executive Guy Wills will join New Image as General Manager, Health Sciences.
He will be responsible for Sleeptime sales, marketed through New Image’s direct selling distribution channel and also through traditional retail and food service distribution channels.
New Image share rose 4% to 26 cents, and have fallen 61% in value so far this year.