MAIN Board-listed Ho Wah Genting Bhd through its wholly owned subsidiary HWGB Capital Sdn Bhd has cemented its strategic growth in the health and wellness industry through the proposed acquisition of Advanced Apotheke Sdn Bhd, a distributor of a wide-ranging high-quality fragrances and organic skincare products.
The deal came about following a recent conditional share sale agreement with vendor Leong Oi Heng with the acquisition of 275,000 ordinary shares or 55% stake in Apotheke for RM2.4 mil cash.
With the organic skincare sector on a robust growth trajectory, Apotheke stands at the forefront with its unique East-meets-West approach, blending traditional Chinese medicine (TCM) therapies with contemporary Western treatments.
This holistic wellness philosophy aims to enhance mental health and body immunity, thereby nurturing beauty and promoting healthy-looking skin. This initiative by Apotheke has emerged as a major selling point, differentiating its product line as not just skin-deep but integrative health solutions.
Established in 2010, Apotheke’s products can be viewed on the website of Organic Lab which carries a range of recognised brands, including Neal’s Yard Remedies, Jurlique, L’erbolario, Bloomy Lotus and SSENSE, all of which represent effective, clean and sustainable beauty.
“We are excited about this partnership with Apotheke as it aligns perfectly with our mission of consistently innovating and meeting market demands,” HWGB Capital pointed out in a media statement.
“With the wellness industry ripe with potential, Apotheke’s established brand presence in organic products shall herald a bright future ahead.”
According to market.us, the global organic skin care market size is expected to be worth around US$25.5 bil by 2032 from US$11 bil in 2022, growing at a compound annual growth rate (CAGR) of 9% during the forecast period from 2023 to 2032.
Henceforth, the Apothek acquisition comes strategically as the organic skincare market is experiencing robust growth, propelled by the rising demand for natural alternatives to conventional beauty products.
“With the backing of Ho Wah Genting, we can focus on expanding our outlets and product offerings while focusing on digital marketing which is a main source of our customers,” noted Apotheke in a statement.
“We are confident that this collaboration will enable us to tap into new markets and further solidify our position as a leader in the organic skincare industry.”
Apotheke has outlets located at Pavilion Hilltop Mont’Kiara, Exchange 106 within the Tun Razak Exchange and its imminent launch at The Gardens Mall, one of Kuala Lumpur’s premium shopping destinations.
At 2.45pm, Ho Wah Genting was unchanged at 21 sen with 318,100 shares traded, thus valuing the company at RM43 mil. – March 15, 2024
