Nestle buys vitamin maker Bountiful's main brands for $5.75 billion
Reuters
Published Apr 30, 2021 01:39AM ET
Updated Apr 30, 2021 02:00AM ET
ZURICH (Reuters) -Nestle has bought the main brands of vitamin and supplements maker The Bountiful Company for $5.75 billion, the world's largest packaged food company said on Friday, the latest expansion of its health and nutrition business.
The KitKat chocolate bar maker bought Bountiful from KKR in a deal which covers the U.S. company's Nature's Bounty, Solgar, Osteo Bi-Flex and Puritan's Pride brands. Nestle had flagged talks on Monday.
The deal, expected to be completed during the second half of this year, did not include the sports and active nutrition brands Pure Protein, Body Fortress and MET-Rx, as well as Dr.Organic and the Canadian over-the-counter business, which did not fit with the rest of Nestle Health Science business.
"This acquisition complements our existing health and nutrition portfolio in terms of brands and channels," said Greg Behar, CEO of Nestle Health Science.
"It will establish Nestle Health Science as the industry leader in mass retail, specialty retail, e-commerce and direct-to-consumer in the U.S., while offering significant opportunities for geographic growth," he added.
Nestle is paying 3.1 times the value of Bountiful's sales for the brands, and a multiple of 16.8 times of their earnings before interest before tax, depreciation and amortisation (EBITDA).
The acquired brands had sales of $1.87 billion in the year to March 2021, with an EBITDA margin of 18.3%. The margin is expected to increase above the Nestle Group average once synergies are fully implemented by 2024, the Swiss company said.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.