Swiss food and drink giant Nestle SA yesterday struck a deal to buy Canadian privately-held vitamin maker Atrium Innovations for $2.3 billion in order to expand its consumer healthcare portfolio.
Nestle is buying Atrium Innovations, a maker of organic and natural supplements, from an investor group led by private equity firm Permira Funds.
Post closing, Atrium, with its corporate offices in Quebec, Canada, will become part of Nestlé Health Science.
Its existing management team will continue to run the business, led by Peter Luther, Atrium Innovations president and CEO.
Atrium's largest brand, Garden of Life, is the #1 brand in the natural supplement industry in the US.
Founded in 1999, Florida-based Garden of Life, manufactures certified organic, non-GMO supplements that are sold in more than 14,000 health food stores and online in the US, as well as select markets internationally.
Massachusetts-based Pure Encapsulations is a full line of hypoallergenic, research-based dietary supplements, and is the #1 recommended brand in the US practitioner market. Pure Encapsulations product line is free from common food allergens, GMOs, fillers, binders and artificial colors and is sold in the US via healthcare practitioners, online as well as in pharmacies in several markets in Europe.
The remainder of the Atrium portfolio includes specialty brands like Wobenzym, Douglas Laboratories, Genestra Brands, Orthica, AOV, Minami, Klean Athlete, Pharmax and Trophic.
Atrium's 2017 sales are expected to reach nearly $700 million.
Mark Schneider, new CEO of Nestle, has focused on acquisitions for growth. This year alone, he has made 6 acquisitions which include Chameleon Cold Brew, Freshly Inc,
Sweet Earth Inc, Terra Canis GmbH, Blue Bottle Coffee Inc and others.
Nestle said that the transaction supports its pursuit of growth opportunities in consumer healthcare to complement its focus on its high-growth food and beverage categories.
Greg Behar, Nestlé Health Science CEO said: ''We value Atrium's history as a highly successful company and welcome its 1,400 employees to the Nestlé family. Their brands are a natural complement to our Consumer Care portfolio, which offers nutritional solutions in the areas of Healthy Aging, Healthy Growing, Gut Health and Obesity Care.''
''Atrium's portfolio will extend our product range with value-added solutions such as probiotics, plant-based protein nutrition, meal replacements and an extensive multivitamin line, enabling consumers to address their health and wellness goals,'' he added.