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KKR TO SELL THE BOUNTIFUL COMPANY TO NESTLÉ FOR $5.75 BILLION

May 3, 2021
May 3, 2021
Amanda Jones via Unsplash

Nestlé and KKR have entered into an agreement in which Nestlé will acquire core brands of The Bountiful Company for $5.75 billion.

WHO: The Bountiful Company is the number-one pure-play leader in the highly attractive and growing global nutrition and supplement category living at the intersection of science and nature. They are a manufacturer, marketer, and seller of vitamins, minerals, herbal, and other specialty supplements, and active nutrition products.

Nestlé Health Science (NHSc), a wholly owned subsidiary of Nestlé, is a globally recognized leader in the field of nutritional science. NHSc is committed to empowering healthier lives through nutrition for consumers, patients, and their healthcare partners. The company offers an extensive consumer health portfolio of industry-leading medical nutrition, consumer, and VMS brands that are science-based solutions covering all facets of health from prevention, to maintenance, all the way through to treatment.

WHY: By combining 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, Vital Proteins, Pure Encapsulations, Wobenzym, Douglas Laboratories, Persona Nutrition, Genestra, Orthica, Minami, AOV, and Klean Athlete.

IN THEIR OWN WORDS: “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.”

“The 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.”

“Paul and the entire The Bountiful Company team have built a global portfolio of brands that are positioned for sustained growth, with a great culture of innovation, accountability and pace of change,” said Nate Taylor, Partner and Co-Head of Americas Private Equity at KKR. “We know that The Bountiful Company will add value to Nestlé and continue to enhance the health of the millions of consumers who use their products each and every day.”

“Since KKR’s investment, The Bountiful Company has transformed into a leading, fast growth, pure-play nutrition platform through significant investments in talent, brand building, R&D, eCommerce, and manufacturing capabilities,” added Felix Gernburd, Managing Director at KKR. “We’re immensely appreciative of everything Paul and the management team have done to build a unique company that is dedicated to bringing wellness to its communities and creating value for all of its stakeholders.”

“We’re pleased to have partnered with the management team and KKR in this chapter of The Bountiful Company’s growth and are excited to see the business continue its journey with Nestlé,” said Jay Sammons, Head of Carlyle’s Global Consumer, Media, and Retail team.

DETAILS:

  • Nestlé and KKR have entered into an agreement in which Nestlé will acquire core brands of The Bountiful Company for $5.75 billion.
  • KKR, primarily through its Americas XII Fund, acquired a majority interest in The Bountiful Company from The Carlyle Group in 2017. Carlyle Partners V and Carlyle Europe Partners III funds retained a minority stake in the company and are participating in the sale alongside KKR.
  • The transaction includes the high-growth brands Nature’s Bounty, Solgar, Osteo Bi-Flex, and Puritan’s Pride, 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, Body Fortress, and MET-Rx, as well as Dr.Organic and the Canadian over-the-counter business, which do not complement the Nestlé Health Science portfolio, are not included in the deal.
  • In June 2020 Nestlé Health Science acquired a majority stake in Vital Proteins, its first acquisition of a collagen-based wellness company.
  • Evercore is acting as lead financial advisor and Simpson Thacher & Bartlett LLP as legal advisor to KKR. Morgan Stanley & Co. LLC and JP Morgan Securities LLC also served as financial advisors to KKR.
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