Nestlé to buy Atrium Innovations for €1.9Bn ($2.3Bn) from group led by Permira Funds

Nestlé to buy Atrium Innovations for €1.9Bn ($2.3Bn) from group led by Permira Funds

Nestlé, the largest packaged food company, agreed to acquire Atrium Innovations, a Canada-based global leader in nutritional health products, for $2.3 Bn in cash from a group of investors led by Permira Funds. The move supports Nestlé’s pursuit of growth opportunities in consumer healthcare to complement the company’s focus on high-growth food and beverage categories.

Atrium Innovations is a globally recognised leader in the development, manufacturing and commercialisation of innovative, science-based, natural health products. The company makes vitamins, probiotics and meal replacements under the brands Garden of Life, Douglas Laboratories, Pure Encapsulations and others. It employs more than 1,400 people and operates 7 manufacturing facilities in the US, Canada, Europe and Argentina.

About 80% of Atrium’s revenue comes from the USA, which leaves room for more acquisitions in the sector in other countries. According to Greg Behar, Nestlé Health Science CEO, the division will continue to look for growth opportunities. It is rumoured that Nestlé is considering US-based Hain Celestial Group and Germany’s Merck as targets.

Nestlé expects the acquisition to add to earnings immediately. The deal values Atrium at 3.3x its 2017 sales of $700 M.

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