(Yicai Global) Feb. 1 -- Health food producer By-Health Co. plans to buy a leading Australian probiotics producer to satisfy increasing consumer demand in China.

The Guangdong-based group said yesterday it signed an acquisition agreement with the shareholders of Life-Space Group Pty Ltd. to purchase it for at most AUS690 million (USD558.6 million) in cash.

Probiotic products, including supplements and yogurts, have gained popularity in recent years, and their global market scale hit USD36 billion in 2017. The value of the market in China is about CNY45.5 billion (USD7.2 billion) and is expected to increase to CNY89.6 billion in 2022.

Established in 1993, Life-Space entered the Chinese market in 2014 through a cross-border platform. It has built a solid reputation in Australia and China, By-Health said.

Founded in 1995, By-Health is among China's top nutritious food firms. It sources raw materials from 23 countries and has supply bases in five including Brazil and Australia.