Publication: The Australia Financial Review

Authors: Sarah Thompson and Anthony MacDonald

Weight loss shakes maker Celebrity Slim has been sold by ASX-listed healthcare company Probiotec to Global Brands Australia for $6.75 million cash.

The deal - first flagged by Street Talk in July - is part of Global Brands' plan to list on the ASX-boards.

According to a pitch deck seen by Street Talk, Global Brands told fund managers in July that after purchasing Celebrity Slim, it would be back raising another $5 million for its IPO in September.

Global Brands paid a $1.5 million deposit to Probiotec, with the balance to be paid upon the completion of the Celebrity Slim deal, subject to customary working capital adjustments.

Global Brands is backed by former trade minister Andrew Robb, chairman of The Robb Group and a non-executive chairman for Global Brands.

Robb is expected to help Global Brands tap into the Chinese market, and China was a core part of the IPO pitch to fundies.

The Celebrity Slim sale is expected to occur on September 30, subject to a Global Brands financing condition relating to the completion of its off-market equity raising process.

Probiotec managing director Wes Stringer told the market that "the sale of Celebrity Slim successfully concludes the company's divestment of its branded product portfolio."

The sale will allow Probiotec to focus on its manufacturing business.