Vitamins group Blackmores has splashed out about $40 million on buying FIT-BioCeuticals, which sells nutritional supplements direct to health care practitioners.
Blackmores chief executive Christine Holgate said the deal would deliver greater diversity for the company.
"The practitioner market is growing and profitable with qualified healthcare professionals having an important role in providing total health solutions and advice to consumers," she said.
"It is our intention to run BioCeuticals and its existing brands as a stand-alone business, utilising the resources and knowledge within both companies to improve our ability to service our customers."
BioCeuticals' main brands include the IsoWhey weight management range.
The deal involves Blackmores acquiring all of BioCeuticals' shares, free of debt.
BioCeuticals will transfer its product portfolio and brand names as well as its 100 Sydney-based staff to Blackmores.
Blackmores' shares were 10 cents higher at $26.35 at 1226 AEST.
Keep reading - next article