TIDM76TQ
RNS Number : 1989X
Nestle SA
30 April 2021
Nestlé Press Release
Vevey, April 30, 2021
Nestlé to acquire core brands of The Bountiful Company, expands
health and nutrition portfolio
Nestlé and KKR today have entered into an agreement in which
Nestlé will acquire core brands of 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(R), Solgar(R), Osteo Bi-Flex(R) and Puritan's Pride(R) 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(R), Body
Fortress(R) and MET-Rx(R), as well as Dr.Organic(R) 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."
"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 CEO, The Bountiful Company. "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 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.
By combining the The Bountiful Company's core assets together
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(R) , Vital Proteins(R) ,
Pure Encapsulations(R) , Wobenzym(R) , Douglas Laboratories(R) ,
Persona Nutrition(R) , Genestra(R) , Orthica(R) , Minami(R) ,
AOV(R) and Klean Athlete(R) .
+++
About Nestlé Health Science
Nestlé Health Science, a leader in the science of nutrition, is
a globally managed business unit of Nestlé. We are committed to
redefining the management of health, offering an extensive
portfolio of science-based consumer health, medical nutrition,
pharmaceutical therapies, and vitamin and supplement brands. We
believe in empowering healthier lives through nutrition. Our
extensive research network, both within Nestlé's R&D centers as
well as with external partners, provides the foundation for
products that can help people to live their healthiest lives.
Headquartered in Switzerland, we have more than 7,000 employees
around the world, with products available in more than 160
countries. www.nestlehealthscience.com
About The Bountiful Company
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. The
Bountiful Company's portfolio of trusted brands includes Nature's
Bounty(R), Solgar(R), Pure Protein(R), Osteo Bi-Flex(R), Puritan's
Pride(R), Sundown(R), Body Fortress(R), MET-Rx(R), Ester-C(R) and
Dr.Organic(R). For more information, visit Bountifulcompany.com and
follow us on LinkedIn , Facebook and Twitter .
Contacts
Media
Christoph Meier
Tel.: +41 21 924 2200
mediarelations@nestle.com
Jacquelyn Campo
Tel.: +41 79 598 1163
NestleHealthScience.External@nestle.com
Investors
Luca Borlini
Tel.: +41 21 924 3509
ir@nestle.com
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