Goubuli Group, owner of traditional Chinese medicine brand "Tianjin Tong Ren Tang," has inked a $45 million agreement with Australia's Blooms Bluesky Health Products.

The Chinese firm will import and distribute the Australian supplement group's products in China, co-branded with Tianjing Tong Ren Tang. Goubuli Group is particularly interested in Blooms because the company had "fully integrated operations" including brand and manufacturing facilities that are helpful to boost both firms' success, Jason Li, chief executive of Yatsen Associates who helped broker the deal, said.

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"The deal was valued at about 11 times their 2016 EBITDA (earnings before interest, tax depreciation, amortization) which shows the continued strength of the sector," Li said, adding that "there is a tremendous demand for natural, healthy products from Australia... We see this as a sector of great opportunity for Australian companies."

Meanwhile, Financial Review reported that Goubuli is also planning to invest more in research and development in Australia, particularly in finding ways to turn "foul tasting" traditional medicines into tablets or capsules.

China's sprouting interest in supplements, vitamins, and drugs has brought to the proliferation of the suitcase courier "daigou" trade, a channel where overseas family and friends buy commodities for Chinese customers with prices between 30 percent and 40 percent higher than abroad. The boost has also made Australian firms such as Chemist Warehouse secure the No.1 spot in Alibaba's TMall shopping website.

Trading between the two nations has also been strengthened after the China-Australia Free Trade Agreements relaxed tariffs on pharmaceutical products.

Goubuli Group's 370-year-old Tianjing Tong Ren Tang is one of the oldest traditional Chinese medicine brands. Last year, China passed a new law incorporating Traditional Chinese Medicine (TCM) into the country's healthcare system. The new law, which will take effect starting this July, aims to protect and facilitate TCM development and put both TCM and Western medicine on an equal footing.