Nestle to acquire core brands of The Bountiful Company, expands health and nutrition portfolio
Nestle and KKR today have entered into an agreement in which Nestle will acquire core brands of The Bountiful Company for USD 5.75 billion. The Bountiful Company is the number one pure-play leader in the highly attractive and growing global nutrition and supplement category.
The transaction includes the high-growth brands’ Nature’s Bounty(R), Solgar(R), Osteo Bi-Flex(R) and Puritan’s Pride(R) as well as the company’s US private label business. These brands will be integrated into Nestle Health Science, creating a global leader in vitamins, minerals and nutritional supplements.
The Bountiful Company’s sports and active nutrition brands Pure Protein(R), Body Fortress(R) and MET-Rx(R), as well as Dr Organic(R) and the Canadian over-the-counter (OTC) business, which do not complement the Nestle Health Science portfolio, are not included in the deal. The transaction is expected to close in the second half of 2021, following the completion of customary closing conditions, including regulatory clearance.
“Vitamins and supplements are a key part of our business and have contributed to strong growth acceleration,” said Nestle Health Science CEO Greg Behar.
“This acquisition complements our existing health and nutrition portfolio in terms of brands and channels. It will establish Nestle Health Science as the industry leader in mass retail, speciality retail, e-commerce and direct-to-consumer in the US while offering significant opportunities for geographic growth. Today’s announcement from Nestle Health Science recognizes the transformation of The Bountiful Company over the past 3+ years and the collective value and capability of the organization. I am incredibly grateful to the more than 4,500 colleagues around the globe who have worked tirelessly to get us to this point,” said Paul Sturman, President and CEO, The Bountiful Company.
“As a leader in global nutrition, we take seriously our responsibility and role in consumers’ health and wellness. We’re incredibly proud of the trusted brands we’ve built and are confident that they will be strong assets for Nestle”, Paul Sturman added.
The transaction is valued at USD 5.75 billion on a cash-free, debt-free basis, representing a multiple of 3.1x net sales and 16.8x EBITDA as of March 31, 2021. Net sales of the acquired brands were USD 1.87 billion in the last twelve months ending March 31, 2021, with an EBITDA of 18.3%. This EBITDA will be negatively affected by one-off integration costs, which will be slightly dilutive to Nestle’s underlying trading operating profit margin in 2021. The margin is expected to increase above the Nestle Group average once synergies are fully implemented by 2024.
By combining The Bountiful Company’s core assets with Nestle’s leading science and innovation in health and nutrition, Nestle is well placed to accelerate benefits in prevention and treatment solutions to consumers across the world.
Nestle Health Science’s current vitamins, minerals and supplements brands include Garden of Life(R), Vital Proteins(R), Pure Encapsulations(R), Wobenzym(R), Douglas Laboratories(R), Persona Nutrition(R), Genestra(R), Orthica(R), Minami(R), AOV(R) and Klean Athlete(R).
About Nestle Health Science
Nestle Health Science, a leader in the science of nutrition, is a globally managed business unit of Nestle. The company is committed to redefining health management, offering an extensive portfolio of science-based consumer health, medical nutrition, pharmaceutical therapies, and vitamin and supplement brands. The company believes in empowering healthier lives through nutrition. Their extensive research network, both within Nestle’s R&D centres as well as with external partners, provides the foundation for products that can help people to live their healthiest lives. Headquartered in Switzerland, nestle has more than 7,000 employees worldwide, with products available in more than 160 countries.
About the Bountiful Company
The Bountiful Company is a pure-play branded leader in global nutrition, living at the intersection of science and nature. As a manufacturer, marketer and seller of vitamins, minerals, herbal and other speciality supplements, and active nutrition products, the company focuses on enhancing the health and wellness of people’s lives. The Bountiful Company’s portfolio of trusted brands includes Nature’s Bounty(R), Solgar(R), Pure Protein(R), Osteo Bi-Flex(R), Puritan’s Pride(R), Sundown(R), Body Fortress(R), MET-Rx(R), Ester-C(R) and Dr Organic(R).
Disclaimer:
The information contained in this article is for educational and informational purposes only and is not intended as a health advice. We would ask you to consult a qualified professional or medical expert to gain additional knowledge before you choose to consume any product or perform any exercise.
