KUALA LUMPUR: LYC Healthcare Bhd (LHB) is acquiring a 70 per cent stake in Clinical Nutrition Intl (M) Sdn Bhd (CNSB) for RM2.24 million.
CNSB is mainly involved in the supply of nutraceutical ingredients and owns a 50 per cent shareholding in two proprietary probiotic strains, namely Lactobacillus Plantarum DR7 (DR7) and Lactobacillus Fermentum DR9 (DR9), of which DR7 has already been successfully commercialised and patented.
It is also involved in the formulation and sale of 'Sweden Farm Instant Oat Drink' an eight-year-old brand to reduce cholesterol and lower the rise of blood glucose, which is sold in selected pharmacies and online channels in Malaysia.
LYC will streamline the interest in all its nutraceutical companies under LYC Nutrihealth Sdn Bhd (LNSB), a wholly-owned subsidiary under LYC Medicare Singapore Pte Ltd (LMPL).
CNSB will support the growth of LHB's nutraceutical businesses, mainly driven by Aqurate Ingredients Intl (M) Sdn Bhd (AII), which supplies functional ingredients and provides solutions to the food and beverage, nutraceutica pharmaceutical and cosmeceutical industry.
CNSB also supports Microbiome Intl (M) Sdn Bhd, which is involved in researching and developing food and health ingredients and registering nutraceutical and pharmaceutical-related products with the relevant authorities.
LHB managing director and group chief executive officer David Sui Diong Hoe said that with rising awareness and consumption of health and wellness supplements, it is time to enhance the company's market presence in this growing market by developing more products.
"CNSB has two valuable ownership of probiotic strains that have demonstrated to benefit overall health successfully.
"Looking ahead, there are ample opportunities for us to monetise these strains by leveraging AII's strong sales network and working with foreign parties for international distribution," he said in a statement today.
The acquisition is expected to be completed within three months.
LNSB will also enter into a put option agreement with the vendors of CNSB for the remaining 30 per cent shareholding, which will be exercised from 28 September 2024 and expire by 27 September 2027.