The animal and healthcare products company, Ebos Group, is to buy well known natural health goods manufacturer, Red Seal, for $80 million.
Red Seal's products include vitamins, minerals and herbal teas.
The chief executive of Ebos, Patrick Davies, said the acquisition was part of its plan to expand into areas that create long term opportunities.
At the company's recent annual meeting, it said an acquisition was imminent and the company was aiming for another year of double digit profit growth.
First quarter trading has been up around 20 percent up on a year ago, and the company has low debt levels, giving it headroom to buy Red Seal.
Mr Davies said Ebos was confident it could expand the sales of the Red Seal products, which have been market leaders in the sector since the 1920s.
The transaction was being funded from Ebos' current debt facilities and was expected to be complete by the end of the month.
