Oil explorer turned infant formula exporter Jatenergy has added more brands to its portfolio with the acquisition of Sydney-based wholesaler Green Forest.

The wholesaler will add vitamin brands Blackmores (ASX:BKL) and Swisse as well as skincare from Trilogy (ASX:TIL) and milk powder from A2 (ASX:A2M), Aptamil and Bellamys (ASX:BAL).

Ten-bagger Jatenergy (ASX:JAT) joined the infant formula exporter crew in December, propelling its shares into the stratosphere.

JAT shares surged 21 per cent to 17c in Thursday morning trade, settling to 16.5c at 11am AEST. Six months ago the stock was fetching 2c — and has traded as high as 29c in recent months.

The shares closed Thursday at 15.5c.

Milk powder exporters — especially those focused on China — have been star ASX performers over the past year, though tension between Canberra and Beijing caused a few wobbles this week.

Jatenergy (ASX:JAT) will acquire half of Green Forest’s shares and get two directors on the board.

The deal is worth $2 million cash plus 40 million scrip – with a further earn-out payment if profit exceeds $1.5 million in the first year.

The two will each contribute $2 million in working capital.

Jat Energy shares (ASX:JAT) over the past year.
Jat Energy shares (ASX:JAT) over the past year.

Director Wilton Yao said the acquisition would provide an immediate boost to the company’s turnover.

“More importantly, our businesses are highly complementary,” he told investors.

“It is also a part of the JAT strategy for developing of its FMCG [fast moving consumer goods] distribution and sales channel. Further, Green Forest is able to provide great opportunities for JAT to increase new sales channels of JAT’s own products.”

In the December half Green Forest made sales of $25.1 million and a profit close to $2 million.

“The directors of JAT and Green Forest are confident that, working together the businesses will achieve significantly higher growth rates and profitability. The acquisition is expected to result in JAT achieving significant and constant cashflow.”