Nestlé have agreed to acquire Atrium Innovations for $2.3bn
Nestlé is set to acquire privately-held Canadian vitamin company Atrium Innovations for $2.3bn. the move will see Nestlé further grow its consumer healthcare business and become a global leader in nutritional health products, as well as enhance its high-growth food and beverage categories
The transaction is expected to close in the first quarter of 2018 following the completion of customary approvals and closing conditions.
Global markets are becoming increasingly health-conscious, leading food and beverage brands to transform its traditional focus and tap into further markets in order to remain competitive and advance their service portfolios.
Upon closing, Atrium, with its corporate offices in Quebec, Canada, will become part of Nestlé Health Science. Its existing management team will continue to manage the business, led by Peter Luther, Atrium Innovations President and Chief Executive Officer.
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"Atrium's 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,” explained Greg Behar, Chief Executive Officer for Nestlé Health Science.
“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."
Behar added, "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."
With sales expected to reach up to $700mn in 2017, Atrium will add to Nestlé’s revenue stream with immediate effect.
Atrium's largest brand, Garden of Life, remains the #1 brand in the natural supplement industry in the US, and also houses brands such as Douglas Laboratories, Orthica, Minami and Pharmax.