Why Supplement M&A Is Exploding

Within the past 6 months, $10.5 billion has been spent on branded vitamin, mineral and supplement (“VMS”) businesses by some of the largest and best-known CPG companies and private equity firms in the world.

This is more money than in any calendar year historically.

Since September 2017, Procter & Gamble announced its $4.4 billion acquisition of Merck’s VMS business (its first large acquisition in many years), Clorox spent $700 million on NutraNext (on the heels of ReNew Life), Nestle spent $2.3 billion on Atrium Innovations and KKR spent a reported $3 billion on Nature’s Bounty.

A few thoughts:

  1. Health and Wellness is of more importance to large CPG companies than ever;
  2. The VMS category is growing faster than most CPG categories globally, with select markets and segments growing double digits;
  3. The strategic buyer universe for VMS assets is aggressively expanding well beyond the traditional consumer health players; and
  4. VMS has become a dynamic battle ground for Millennials — the largest demographic on the planet — with a plethora of disruptive, exciting and high growth brands targeting and connecting with Millennial (and even Gen Z) consumers at retail, digitally, and through direct-to-consumer.

Do we expect this M&A momentum to continue?

A resounding YES!