Nestlé has agreed a deal to buy vitamin, mineral and supplement manufacturer Atrium Innovations for $2.3 billion, after an agreement was reached with a group of investors led by Permira Funds.
This purchase highlights Nestlé’s ambition to expand its presence in the consumer healthcare sector. Atrium’s portfolio includes 13 brands such as Garden of Life, Pure Encapsulations and Wobenzyn.
The deal is expected to be concluded in the first quarter of 2018, after which Atrium Innovations will join the Nestlé Health Science division.
Greg Behar, Nestlé Health Science chief executive officer 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 ageing, 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.
“Atrium’s established brands are in attractive categories and have the potential for continued strong growth as part of Nestlé through category, channel and geographic expansion. It also represents additional offerings in the segment for non-GMO, organic and natural supplements, a fast-growing consumer trend, as well as a new sales channel.”
Peter Luther, president and chief executive officer of Atrium Innovations, said: “Since Atrium was established in 1999, we have been dedicated to providing premium-quality, science-based, professionally recognised products to consumers and healthcare practitioners.
“We are very pleased to be joining Nestlé Health Science, as we share a common purpose of helping people lead healthier lives by providing good-for-you products made with the highest standards for quality and efficacy.
“Nestlé will provide Atrium with the resources to accelerate the growth of our brands and reach more people globally.”
Atrium’s 2017 sales are estimated to reach $700 million.
© FoodBev Media Ltd 2020