A healthcare firm backed by NRI industrialist Sir Gulam Noon is buying BioCare, one of Britain's leading makers of natural and herbal remedies, at a cost of £16.1 million.
Noon has 10.7 per cent stake in NeutraHealth, the company that will take over BioCare, which sells over 170 products including vitamins, minerals and fish oils to health care professionals in the United Kingdom.
The Birmingham-based company that started by distributing a single supplement was founded in 1985 by husband and wife John and Sharon Stirling. The duo will net an instant £14.1 million from the sale as well as £1 million in NeutraHealth shares and £1 million in shares or loan notes a year later.
Sir Gulam is putting 100,000 pounds of his own money into the deal and other members of his family are also making contributions. The remaining directors of NeutraHealth will put in a further £255,000 with the balance coming from new investors.
The takeover follows Sir Gulam's £300,000 purchase of a 10.7 per cent stake in NeutraHealth, set up to buy firms in the natural healthcare industry, earlier this year.
The investment in the £2 billion alternative healthcare market is the latest shrewd move by the Indian tycoon, who began his working life in the family confectionery business in Mumbai at 17. He received a knighthood in 2002.