Nestle Buying Atrium for $2.3 Billion Cash

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Montreal, CA — Atrium Innovations, a globally recognized leader in the development, manufacturing and commercialization of innovative, science-based, natural health products, and Permira, the global investment firm, have announced that Atrium will be acquired by Nestlé for $2.3 billion in cash from a group of investors including a company backed by the Permira Funds, Fonds de solidarité FTQ and Caisse de dépôt et placement du Québec.

Atrium, whose brands include Garden of Life and Pure Encapsulations, is a worldwide leader in nutritional supplements and one of the fastest growing companies in the industry globally. Its brands and business model are complementary with Nestlé’s science-based nutritional solutions for consumers, patients, doctors, nurses and other partners in healthcare.

Upon closing, Atrium will become an independent operating division within the Nestlé Health Science business, and according to the press announcement, the company will continue to operate as it has prior to the acquisition. Over the last four years Atrium has undergone a period of tremendous growth and transformation, which included:

  • Increasing revenue and EBITDA significantly through new product development and channel growth, particularly ecommerce;
  • Accelerating the international expansion of leading brands, including Garden of Life and Pure Encapsulations;
  • Strengthening the leadership team with strategic hires from world-class companies; and
  • Enhancing operations across the company, including implementing best-in-class manufacturing and quality and regulatory compliance.

“We are very pleased to be joining Nestlé Health Science as we share a common purpose of helping people lead healthier lives by providing good-for-you products that are made with the highest standards for quality and efficacy,” said Peter Luther, president and CEO of Atrium in the statement. “Nestlé will provide Atrium with the resources to continue the strong growth of our brands and reach more people globally.”

Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and William Hood & Company, a division of AXIA Capital Markets, acted as financial advisers and Skadden, Arps, Slate, Meagher & Flom LLP and Stikeman Elliott LLP acted as legal advisers to Atrium Innovations and Permira.

The transaction is expected to close in the first quarter of 2018, subject to customary closing conditions, including regulatory review.

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