OBJ executes $85 million agreement to acquire Nutrition Systems

OBJ Limited (ASX:OBJ) has conditionally agreed to acquire 100% of Export Corporation (Australia) Pty Ltd, which owns and operates the Nutrition Systems business, a distributor of nutrition products.

Nutrition Systems is a highly profitable distributor and wholesaler of nutritional wellness products in Australia and New Zealand.

This acquisition is expected to strengthen OBJs growth by positioning it closer to target markets and the end consumer through Nutrition Systems distribution network of specialty stores, major pharmacy and grocery chains.

It will also allow the Nutrition Systems business to access OBJs technology platforms and manufacturing expertise.

Consideration of $85 million

The total acquisition consideration is $85 million of which $50 million will be satisfied with cash from a proposed capital raising and $35 million in equity.

Established in 1991, Nutrition Systems was one of the first companies in Australia to import health, wellness and sports nutritional products from the United States of America.

For over 25 years, Nutrition Systems has been importing and distributing the highest quality sports nutrition products from the USA, with a focus on innovative and effective products.

Leading wellness brands

Nutrition Systems distributes leading nutritional wellness brands including Cellucor, Scivation, Muscle Pharm, ProSupps, Ghost, GAT Sports, BPI, Lenny & Larrys and Quest Nutrition.

These products are distributed through major grocery and pharmacy platforms including Woolworths, IGA, Coles and Costco, Chemist Warehouse and Terry White Chemists, convenience stores, including Caltex and EzyMart.

It also distributes through hundreds of speciality health and wellness retailers and online, including Nutrition Zone, Elite Supplements, Supps R Us and Supplement Mart.

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