Nestlé and KKR have entered into an agreement in which Nestlé will acquire core brands of The Bountiful Company for US$ 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 and 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, and 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 chief executive officer 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."
"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," said Paul Sturman, president and chief executive officer, The Bountiful Company. "As a leader in global nutrition, we take seriously our responsibility and role in consumers' health and wellness. We are incredibly proud of the trusted brands we have built and are confident that they will be strong assets for Nestlé."
The transaction is valued at US$ 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 US$ 1.87 billion in the last twelve months ending 31 March 2021, with an EBITDA of 18.3%. This EBITDA will be negatively affected by one-off integration costs, 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.
By combining The Bountiful Company's core assets with Nestlé's leading science and innovation in health and nutrition, Nestlé is well placed to accelerate benefits in prevention and treatment solutions to consumers across the world.
Nestlé Heath Science's current vitamins, minerals and supplements brands include Garden of Life, Vital Proteins, Pure Encapsulations, Wobenzym, Douglas Laboratories, Persona Nutrition, Genestra, Orthica, Minami, AOV and Klean Athlete.
Headquartered in Switzerland, Nestlé Health Science, a leader in the science of nutrition, is a globally managed business unit of Nestlé. The company is committed to redefining health management, offering an extensive portfolio of science-based consumer health, medical nutrition, pharmaceutical therapies, and vitamin and supplement brands.
The Bountiful Company is a pure-play branded leader in global nutrition, living at the intersection of science and nature. As a manufacturer, marketer and seller of vitamins, minerals, herbal and other specialty supplements, and active nutrition products, we are focused on enhancing the health and wellness of people's lives.