Nestlé acquires core brands of The Bountiful Company
The transaction is valued at USD 5.75 billion
The Swiss giant expands health and nutrition portfolio.
Nestlé and KKR today have entered into an agreement in which Nestlé will acquire core brands of US 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, Solgar, Osteo Bi-Flex and Puritan’s Pride as well as the company's US private label business. These brands will be integrated into Nestlé Health Science, creating a global leader in vitamins, minerals and nutritional supplements. 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, which do not complement the Nestlé 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 Nestlé Health Science CEO Greg Behar. "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 US, while offering significant opportunities for geographic growth".
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 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.
EFA News - European Food Agency