Adcock Ingram buys Island Tribe from Creighton

JSE-LISTED pharmaceutical company, Adcock Ingram’s consumer division on Friday said it had acquired Island Tribe sunscreen range for an undisclosed amount from Creighton Products, as the company seeks to expand its product portfolio.

The company said it would also acquire Natural Lab range of premium body care from Creighton.

Adcock Ingram consumer divisional head Juliet Fourie said that the group (FMGC) would use its experience gained in fast moving consumer goods to extract value in Island Tribe range.

“The Island Tribe range gives us an opportunity to participate in the non-scheduled goods area while expanding our presence in the personal care arena,” Fourie said.

“With our FMCG experience, we see the opportunity to expand the distribution channels for Island Tribe and to grow our basket of offerings, bringing us closer to the consumers we serve.”

Commitment Fourie added that the acquisition was in line with the company’s commitment to growth through partnerships and acquisitions, particularly in non-regulated areas.

Island Tribe is currently marketed through a limited number of outlets in line with the brands positioning for the active sport enthusiast, Creighton said.

The product protects against UVA and UVB rays and makes claim to offering excellent water resistance.

SPF 50 Clear Gel, offering the highest water resistance of the range, is the flagship sunscreen.

The consumer division, which

is one of the four marketing divisions in Adcock, owns household brands such as Panado, Compral and Bioplus.

The company had earlier in the year indicated its appetite to go on an acquisitive spending spree buoyed by a strong cash position.

Group chief executive Andy Hall last month said while presenting the company’s results for the six months ended December Adcock Ingram was set for growth and ready to pursue acquisitions.

The company has seen some revival in recent years after it was unbundled from Tiger Foods in 2008.

A leaner company has emerged since Bidvest beat Chile-based CFR Pharmaceuticals for the takeover of Adcock in 2014.

The new management had immediately decided to dispose of its loss making Indian business Cosme Farma, a business Adcock bought for R822 million in 2013.

The company is currently majority owned by Bidvest with a 37.5 percent stake, followed by the Public Investment Corporation, with 22 percent and empowerment partner Ad-Izinyosi with 14.7 percent.

The group last month reported a 70 percent increase in earnings a share and a 49 percent increase in headline earnings a share for six months ended December.

Adcock shares rose 0.22 on the JSE on Friday to close at R60.12.