Nestlé and KKR have entered into an agreement in which Nestlé will acquire core brands of The Bountiful Company for $ 5.75 billion. The Bountiful Company is one of the leaders in the growing global nutrition and supplement category.
The transaction includes the high-growth brands Nature's Bounty, Solgar, Osteo Bi-Flex and Puritan’s Pride, as well as the company's U.S. 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, as well as 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.
"Today's announcement from Nestlé Health Science recognizes the transformation of The Bountiful Company over the past three-plus 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 $ 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 $ 1.87 billion in the last twelve months ending March 31, 2021, with an EBITDA of 18.3 percent. 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.
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.
For more information, visit www.nestle.com.