Following the recent approval by the China Food and Drug Administration (“CFDA”) of the registration of Aspen’s infant milk formula brand, Alula, Aspen has decided to formalise its review of strategic options for Nutritionals. A range of options will be considered including, inter alia, the introduction of a strategic partner that could unlock appropriate value.
Nutritionals is a global infant milk formula business, with a particular focus on Emerging Markets with well- established businesses and leading brands in Asia Pacific, Sub-Saharan Africa and Latin America, and a growing presence in the Middle East and China. Having generated revenue of R3,2 billion in FY 2017, Nutritionals is well positioned to continue benefitting from the strong growth trends experienced by the infant milk formula market in these regions, driven by high birth rates, and an increasing demand for safe, high quality infant milk formula.
The CFDA’s approval of the registration of Alula enables Aspen to continue with the export of its infant milk products to China under the more rigorous registration requirements recently imposed by the CFDA and is an important milestone for Aspen as it seeks to establish and grow its brand presence in China, the world’s biggest consumer of infant milk formula.
The strength of Aspen’s Nutritionals business is underpinned by three world class infant milk formula manufacturing sites in New Zealand, South Africa and Mexico.
Aspen has appointed Centerview Partners UK LLP as financial advisor to assist in the strategic review process.
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