Craig Silbery, the entrepreneur who co-founded Life-Space Group and led it to a $690 million sale to Chinese interests, is returning to the probiotics sector with plans to establish Australia’s first end-to-end probiotics manufacturing facility on the Gold Coast. Backed by private equity firm H&S Investments, Silbery has acquired the assets of Probiotics Australia, which entered administration earlier this year. The new venture, named Specialty Probiotics Australia, plans to invest up to $40 million in upgrading the existing manufacturing facility to meet growing demand for probiotics in both local and Asian markets.
Silbery holds a 60% stake in Specialty Probiotics Australia, with H&S Investments owning the remaining 40%. While the purchase price was not disclosed, the partners are focused on swiftly bringing the facility online, anticipating full production capacity by the first quarter of next year following necessary regulatory approvals and equipment upgrades.
Silbery, who sold Life-Space Group in 2018, acknowledges that while he was initially hesitant to exit the industry, the offer from supplements giant By-Health was too significant to decline. Despite his exit, Silbery has remained active in the sector, launching successful probiotics products for pets and exploring opportunities for a return to human probiotics manufacturing.
The acquisition of the Gold Coast facility was a strategic move for Silbery, who recognized the opportunity to bring a world-class probiotic manufacturing operation to market more quickly and cost-effectively than building from scratch. Specialty Probiotics Australia aims to be a key supplier of high-quality probiotic ingredients, particularly for the booming Asian market, which is valued at approximately US$4.4 billion annually.
H&S Investments, with its strong presence in China, is a critical partner in accessing these markets. The new venture also plans to develop a comprehensive library of probiotic strains tailored to Australian consumers, addressing the need for transparency and quality in the local probiotics market, which is valued at over $500 million annually.
