Could EZZ’s strong Asian presence make it a takeover target?

• High quality Brand Australia has become sought after in Asia and China, particularly in food, health and wellness products
• Aussie firms Swisse Wellness, Blackmores and Bondi Sands taken over by major Asian companies in past decade
• MST Financial reckons EZZ could be a takeover target for a larger company seeking a stronger foothold in Asia’s lucrative wellness market

To consumers in Asia and China, Brand Australia has become a powerful asset. It signals products that are clean, safe and trusted — particularly food, health and wellness products — giving them a strong premium reputation.

Global players know it too with Hong Kong-listed Biostime (now H&H Group) a decade ago acquiring an 83% stake in leading Australian provider of vitamins, minerals and herbal supplements Swisse Wellness for ~$1.67 billion, before purchasing the remaining shares to take full ownership in 2016.

The Chinese group was understood to have secured Swisse, – founded in 1969 by Kevin Ring – in a bidding auction from other Chinese rivals with its manufacturing.

In 2023,  Japanese beverage giant Kirin acquired formerly-ASX listed Blackmores in a deal worth around $1.85 billion.

Founded in the 1930s by Maurice Blackmore, the Aussie company specialises in vitamins, supplements and natural health products, with a strong reputation for quality and safety.

Both brands have leveraged their Australian origins to win deep trust in China and Asia’s booming wellness market.  Blackmores now generates ~25% of its revenue from China, while together with Southeast Asia these regions make up more than 60% of its total revenue.

Swisse, under H&H Group, has also leveraged its parent’s distribution network to expand across China and Asia, marketing its products as premium Australian wellness brands.

Also in 2023, unlisted Bondi Sands was taken over by Japan’s chemical and beauty giant Kao Corporation in a cash deal worth ~$450 million.

While not actively seeking to be a takeover target with its own acquisition plans for growth, EZZ Life Science (ASX:EZZ) is emerging as another potential takeover candidate as strategic interest in premium Australian health and wellness brands heats up.

Strong footprint in Asia and Middle Kingdom

Smaller, fast-growing EZZ, has a strong footprint in key Asian markets, including China with its reputation for high-quality health and wellness innovation.

The company formulates, produces, markets and distribute health supplements under the EZZ brand, investing in R&D with third-parties to develop products for which it can develop a strong market position.

EZZ is also an exclusive distributor of skin care products under the EÁORON brand in Australia and New Zealand to pharmacies, supermarkets and specialist retailers.

While it is expanding globally including the launch of a US-focused brand supported by local manufacturing and US Food and Drug Administration (FDA) registration EZZDAY, China has been where much of its growth has been centred.

More than 85% of EZZ’s revenue now comes from the Middle Kingdom with the company having a high presence and strong digital marketing strategies on leading Chinese e-commerce platforms including Douyin, Kuaishou and Tmall.

In its latest financial report EZZ reported receipts from customers totalled $21.3m, reflecting a 46% increase from the prior quarter.

EZZ last year secured a three-year Australian Open sponsorship deal covering China and Southeast Asia in its largest marketing venture to date, with the Aussie grand slam a much-loved sporting event watched by more than 300 million Chinese fans.

“China remains EZZ’s largest consumer market with strong growth across the women’s health, paediatric health and probiotic categories,” EZZ director of corporate affairs James Hudson told Stockhead.

It has also inked a three-year $21 million distribution deal with ROFA Enterprises for the sale of EZZ-branded healthcare products across three key Southeast Asian markets including Thailand, Vietnam and Singapore.

“While each market is distinct, Southeast Asia shares some similarities with China in consumer preferences and its surging appetite for health products, including EZZ’s supplements,” Hudson said.

“This fast-growing region presents significant opportunities, and we are excited about its potential.”

Compelling takeover opportunity

For a larger company seeking growth, diversification or a stronger foothold in Asia’s lucrative wellness market, EZZ represents a compelling takeover opportunity, according to MST Financial senior life science analyst Chris Kallos.

The company has Therapeutic Goods Administration (TGA) registrations, product manufacturing to GMP standards, and a growing reach in China and Asia. It also has strong financials with cash reserves of ~$20.8m at June 30, 2025, no external debt, and pays a dividend.

“EZZ appeal as a takeover target stems from its reputation for premium Australian quality, robust financials and rapidly expanding footprint throughout Asia, where demand for trusted, safe wellness products continues to surge, ” Kallos told Stockhead.

“EZZ’s expanding reach into Southeast Asia, combined with its reputation for high standards in product quality, make it a potential takeover candidate for international companies looking to leverage Australian excellence into emerging markets in Asia.”

Whether EZZ ultimately becomes the next Blackmores or Swisse remains to be seen, Kallos said the key ingredients were there with rising sales, regional growth and an acquisitive environment hungry for premium Australian wellness brands.

“EZZ is well positioned for acquisition — its Australian-made supplements enjoy premium status in Asia and its dynamic growth in regional markets presents a ready-made platform for any wellness brand seeking strategic expansion,” he said.

Focused on growth and acquisition

In its latest market update EZZ said it planned to scale its EZZDAY brand in the US, leveraging digital and retail channels such as Amazon, while also investing in strategic influencer campaigns to boost awareness and adoption.

In Southeast Asia, EZZ will look to accelerate performance under its ROFA distribution agreement, with rollouts scheduled across Thailand, Vietnam and Singapore.

And at home,  EZZ intends to deepen its presence across Australian retail channels through pharmacy partnerships and expanded in-store placement.

At the same time, the company will continue to prioritise product innovation to keep pace with wellness trends and evolving consumer needs, while also exploring select acquisition opportunities that support long-term growth and shareholder value creation.

On the topic of EZZ as a potential takeover target, Hudson highlighted the company’s commitment to its own growth trajectory.

“With a strong cash position and deep understanding of key consumer markets, at this stage EZZ is focused on pursuing its own acquisition opportunities rather than being acquired,” he said.

At Stockhead, we tell it like it is. While EZZ Life Sciences is a Stockhead advertiser, the company did not sponsor this article.

Disclosure: MST Connect conducts commissioned research for EZZ Life Sciences. 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.