Sector News

Nestlé to buy The Bountiful Company’s core supplement brands

May 1, 2021
Food & Drink

Nestlé has agreed to acquire core vitamin and supplement brands of The Bountiful Company from investment firm KKR for $5.75 billion, as it looks to expand its health and nutrition portfolio.

The Bountiful Company is a US manufacturer and seller of vitamins, minerals, herbal and other speciality supplements and active nutrition products.

The deal includes brands such as Nature’s Bounty, Solgar, Osteo Bi-Flex and Puritan’s Pride, as well as the company’s US private label business. In the last 12 months, these brands recorded net sales of $1.87 billion.

Upon completion, the brands will be integrated into Nestlé Health Science – joining its existing brands including Garden of Life, Vital Proteins, Persona Nutrition, Pure Encapsulations and Genestra.

Meanwhile, The Bountiful Company’s sports and active nutrition brands – Pure Protein, Body Fortress and Met-Rx – as well as its personal care brand Dr.Organic and Canadian over-the-counter (OTC) business are not included in the sale.

The acquisition marks another move by Nestlé to grow its health portfolio – which helped the company beat its full-year expectations – and become a leader in vitamins, minerals and nutritional supplements. Unilever is also building its consumer health portfolio and recently agreed to acquire US supplements brand Onnit.

“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, ecommerce and direct-to-consumer in the US, while offering significant opportunities for geographic growth.”

KKR acquired a majority interest in The Bountiful Company from The Carlyle Group back in 2017, with the latter retaining a minority stake in the company and therefore also involved in this agreement.

“Since KKR’s investment, The Bountiful Company has transformed into a leading, fast growth, pure-play nutrition platform through significant investments in talent, brand building, R&D, ecommerce, and manufacturing capabilities,” said Felix Gernburd, managing director at KKR.

Paul Sturman, president and CEO of The Bountiful Company, said: “Today’s announcement from Nestlé Health Science recognises the transformation of The Bountiful Company over the past three+ years, as well as the collective value and capability of the organisation.

“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.”

The transaction is expected to close in the second half of 2021, subject to regulatory approvals and customary closing conditions.

By Emma Upshall

Source: foodbev.com

comments closed

Related News

May 21, 2022

Cécile Béliot becomes Bel Group CEO

Food & Drink

Cécile Béliot has assumed the role of Bel Group chief executive officer, following the decision to separate the roles of chairman and CEO. The separation of the functions will enable Bel Group to develop in three areas of healthy snacking. Meanwhile, the company’s former CEO, Antoine Fiévet, has had his mandate renewed as chairman of the board.

May 21, 2022

“Corporate greed and dereliction of duty”: FDA commissioner slammed over infant formula shortage

Food & Drink

US Food and Drug Administration (FDA) Commissioner Dr. Robert Califf was grilled by lawmakers during a House Appropriations subcommittee hearing, where he was slammed over the agency’s handling of the escalating infant formula shortage.

May 21, 2022

Sweegen hails antioxidants and bitter blocking tech a turning point for sugar reduction and healthy aging

Food & Drink

Sweegen is ramping up its efforts to reduce sugar across F&B applications while simultaneously tapping into the benefits of using antioxidants and bitter blocking technology. Speaking to FoodIngredientsFirst, Casey McCormick, vice president of global innovation at Sweegen, says product developers can find a broad range of solutions in Sweegen’s nature-based sweetener systems as brands elevate better-for-you foods.