VEVEY, SWITZERLAND – Nestle SA will bolster its Nestle Health Science business unit with the acquisition of some vitamin and supplement brands owned by The Bountiful Co., New York, for $5.75 billion. Brands to be included in the transaction are Nature’s Bounty, Puritan’s Pride, Solgar and Osteo Bi-Flex.
The Bountiful Co.’s sports and active nutrition brands Pure Protein, Body Fortress and MET-Rx, as well as United Kingdom-based personal care brand, Dr.Organic, and the Canadian over-the-counter(OTC) business, VitaHealth OTC, are not included in the sale and will remain with KKR, the private equity company that owns The Bountiful Co.
“Vitamins and supplements are a key part of our business and have contributed to strong growth acceleration,” said Greg Behar, chief executive officer of Nestle Health Science. “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, specialty retail, e-commerce and direct-to-consumer in the US, while offering significant opportunities for geographic growth.”
The transaction’s value of $5.75 billion represents a multiple of 3.1x net sales and 16.8x EPITDA as of March 31, according to Nestle. The company said the acquisition will accelerate its ability to offer benefits in prevention and treatment to consumers around the world.
KKR, primarily through its Americas XII Fund, acquired a majority interest in The Bountiful Co. from The Carlyle Group in 2017.
“Today’s announcement recognizes the transformation of The Bountiful Co. over the past 3-plus years, as well as the collective value and capabilities of the organization,” said Paul Sturman, president and CEO of the supplement maker.
Felix Gernburd, managing director at KKR, added, ““Since KKR’s investment, The Bountiful Co. has transformed into a leading, fast growth, pure-play nutrition platform through significant investments in talent, brand building, R&D, e-commerce, and manufacturing capabilities. We’re immensely appreciative of everything Paul and the management team have done to build a unique company that is dedicated to bringing wellness to its communities and creating value for all of its stakeholders.”
The transaction is expected to close during the second half of 2021.