Switzerland—In a move that makes it a global leader in vitamins, minerals, and nutritional supplements, Nestle has entered into an agreement with KKR to acquire core brands of The Bountiful Company for USD $5.75 billion. Nature’s Bounty, Solgar, Osteo Bi-Flex, Puritan’s Pride, and Bountiful’s U.S. private label business will be integrated into Nestlé Health Science, joining Nestlé Health Science’s current brands including Garden of Life, Vital Proteins, Pure Encapsulations, Wobenzym, Douglas Laboratories, and Persona Nutrition.
According to a press release from Nestle, The Bountiful Company’s sports and active nutrition brands Pure Protein, Body Fortress, and MET-Rx, as well as Dr.Organic and the Canadian over-the-counter (OTC) business, do not complement the Nestlé Health Science portfolio and are not included in the deal.
“Vitamins and supplements are a key part of our business and have contributed to strong growth acceleration,” said Greg Behar, Nestlé Health Science CEO, in the release. “This acquisition complements our existing health and nutrition portfolio in terms of brands and channels. It will establish Nestlé Health Science as the industry leader in mass retail, specialty retail, e-commerce, and direct-to-consumer in the U.S., while offering significant opportunities for geographic growth.”
Paul Sturman, President and CEO, The Bountiful Company, added, “Today’s announcement from Nestlé Health Science recognizes the transformation of The Bountiful Company over the past 3+ years, as well as 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. 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 Nestlé.”
Related: Olam Acquires U.S.-Based Spice Manufacturer
Unilever to Acquire Onnit
Chr. Hansen Natural Colors Completes First Acquisition
The release outlined details of the transaction, which is expected to close in the second half of 2021 (following completion of customary closing conditions, including regulatory clearance):
- Valued at USD $5.75 billion on a cash free, debt free basis, which represents a multiple of 3.1 times the value of Bountiful’s net sales , and 16.8x EBITDA as of March 31, 2021.
- The acquired brands had net sales of USD $1.87 billion in the year ending March 31, 2021, with an EBITDA of 18.3%. Nestle reported that this EBITDA will be negatively affected by one-off integration costs, which will be slightly dilutive to Nestlé’s underlying trading operating profit margin in 2021. The margin is expected to increase above the Nestlé Group average once synergies are fully implemented by 2024.