Catalent is addressing the rising demand for alternative delivery formats with the US$1 billion acquisition of Bettera Brands, which offers nutritional gummies, softgels and lozenges. The definitive agreement is with Highlander Partners, under which it will acquire Bettera Holdings, the parent company of Bettera Brands.
The transaction is expected to close by the end of 2021 and is subject to customary closing conditions.
The acquisition is a key strategic move for Catalent’s Consumer Health business, according to Dr. Aris Gennadios, president, softgel and oral technologies, Catalent.
“As an innovator in softgel and oral technologies, Catalent has a long-standing presence in the rapidly expanding consumer health and nutraceutical marketplace. This way, we can offer customers more product development opportunities and add manufacturing capacity in this dynamic and growing segment.”
“This acquisition allows us to significantly accelerate the growth of our consumer health business and offer customers access to the substantial potential in gummies, soft chews and lozenges, which are all experiencing double-digit growth,” adds Gennadios.
Expanding manufacturing capabilities
Bettera Brands, which is headquartered in Texas, maintains four US manufacturing operations in California, Virginia, New Jersey and Indiana.
Highlander formed Bettera Brands through a series of four acquisitions beginning in 2017 and shaped it into a manufacturer of high-quality ingredient nutritional vitamins, minerals and supplements.
“In 2017, we started with a simple investment thesis of creating manufacturing capabilities around fortified/functional products in consumer-preferred formats,” says Jeff Hull, president and CEO of Highlander Partners.
As consumers have become increasingly health-conscious, functional products in gummy, soft chew and lozenge delivery forms have developed and grown to become a significant part of the market,” he argues.
“Given the substantial advances in delivery technologies, along with the increased health awareness, consumers are embracing these experiential formats as part of their everyday wellness routine.”
Jeff Partridge, a partner with Highlander who also served as Bettera’s CEO, adds that the company has identified a need early on and quickly assembled assets and a management team to capitalize on the demand and growth.
“Developing certified facilities, maintaining strict compliance standards and creating highly technical R&D capabilities was not an easy task.”
Expansion moves
Catalent recently signed a commitment letter with the Science-Based Target initiative, joining the list of companies setting actionable, science-based greenhouse gas emission reduction targets to limit global warming.
The company previously released Optigel DR, a design for delayed-release softgel capsules that eliminates the need for a second coating step in the manufacturing process. This is done by combining pectin with gelatin.
This launch inspired Hofseth BioCare to develop a delayed-release formulation of its OmeGo fish oil along with Catalent.
Moreover, Catalent launched CosmoPod Duo, a softgel capsule for the delivery of topical skin treatments. Based on the company’s CosmoPod unit-dose twist-off capsule technology, the capsule features segregated compartments to accommodate two formulations into a single twist-off solution.
Edited by Kristiana Lalou
Source: nutritioninsight.com
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The sale includes custom formulation and contract manufacturing capabilities for the nutrition market from the production facilities in New Jersey and Utah in the United States, and Tamaulipas, Mexico. Financial terms of the transaction were not disclosed.
