ZURICH (Reuters) – Nestle bought major brands from vitamin and supplement maker The Bountiful Company for $ 5.75 billion, the world’s largest packaged food company said on Friday, the latest expansion of its health and nutrition business. .
Chocolate bar maker KitKat bought KKR’s Bountiful in a deal that covers the company’s Nature’s Bounty, Solgar, Osteo Bi-Flex and Puritan’s Pride brands. Nestlé had flagged the talks on Monday.
The deal, which is expected to be completed during the second half of this year, did not include active nutrition and sports brands Pure Protein, Body Fortress and MET-Rx, as well as Dr. Organic and the Canadian over-the-counter business. that it did not fit in with the rest of the Nestlé Health Science business.
“This acquisition complements our existing health and nutrition portfolio in terms of brands and channels,” said Greg Behar, CEO of Nestlé Health Science.
“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,” he added.
Nestlé is paying 3.1 times the value of Bountiful’s sales for the brands and a multiple of 16.8 times of its earnings before interest before taxes, depreciation and amortization (EBITDA).
The acquired brands had sales of $ 1.87 billion in the year to March 2021, with an EBITDA margin of 18.3%. The margin is expected to rise above the Nestlé Group average once synergies are fully implemented by 2024, the Swiss company said.
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