From skylights to supplements: Falkenstein’s JLG in $17m bid for About Health

27th April 2021 By Staff Reporter | news@foodticker.co.nz | @foodtickernz

A company more known for skylights than supplements is doubling down on its push into the health space, investing $17m to buy New Zealand supplement provider About Health.

Tony Falkenstein’s Just Life Group announced the unconditional acquisition of the business, known for its Lester’s Oil and Res-V Ultimate brands, as part of its strategy to build out its ‘healthy living’ portfolio.

About Health will sit alongside its filtered cooler business Just Water while its other products, including Solatube skylights and home ventilation product Unovent, sit under its Healthy Homes division.

The listed JLG, which is 70% owned by Falkenstein and Ian Malcolm’s The Harvard Group, also signalled it would “continue to seek out acquisition targets within its strategy framework”.

The purchase of About Health from private equity firm Oriens Capital and founder Daniel King would be funded through a combination of new and existing debt facilities, with the Bank of New Zealand in the frame to lend $15m.

JLG also planned to carry out a $4.5m equity raise at an issue price of $0.70 a share. The company’s shares jumped to $1 at market close on Friday after the deal was announced.

JLG said the acquisition of About Health would be immediately accretive to the group earnings.

It added that the customer profile of About Health was similar to that of JLG’s other brands, which provided “opportunities to market across the range of its products”.

“The acquisition of About Health will accelerate the growth of the company and drive shareholder value,” chief executive Falkenstein said.

“The company’s business was affected by Covid-19 and the aftermath of the lockdowns, but the resilience that the company displayed in response has laid a strong base for the future.

“Although the company initially advised that its 2021 earnings would be significantly affected, the directors have been pleased by the quick return to normality as evidenced in the company’s interim 2021 result reported to NZX on 26 February 2021.”

Following the purchase, which is set to complete on 30 April, JLG would have a portfolio of seven brands – including a 60% stake in newly acquired compact rainwater tanks manufacturer Designer Tanks.