Nestlé will acquire core brands of The Bountiful Company from global investment firm KKR for $5.75 billion. The transaction includes Nature’s Bounty, Solgar, Osteo Bi-Flex, and Puritan’s Pride as well as the company’s U.S. private label business. Net sales of the acquired brands were $1.87 billion in the last 12 months ending Mar. 31.
 
These brands will be integrated into Nestlé Health Science, whose current vitamins, minerals and supplements brands includes Garden of Life, Vital Proteins, Pure Encapsulations, Wobenzym, Douglas Laboratories, Persona Nutrition, Genestra, Orthica, Minami, AOV, and Klean Athlete.
 
The Bountiful Company’s sports and active nutrition brands Pure Protein, Body Fortress, and MET-Rx, as well as Dr.Organic and the Canadian over-the-counter (OTC) business are not included in the deal.
 
The transaction is expected to close in the second half of 2021, following the completion of customary closing conditions, including regulatory clearance.
 
“Vitamins and supplements are a key part of our business and have contributed to strong growth acceleration,” said Nestlé Health Science CEO Greg Behar. “This acquisition complements our existing health and nutrition portfolio in terms of brands and channels. It will establish Nestlé Health Science as the industry leader in mass retail, specialty retail, e-commerce and direct-to-consumer in the U.S., while offering significant opportunities for geographic growth.”
 
The deal marks a transformation of The Bountiful Company over the past 3+ years, according to Paul Sturman, president and CEO, “as well as the collective value and capability of the organization. I am incredibly grateful to the more than 4,500 colleagues around the globe who have worked tirelessly to get us to this point. As a leader in global nutrition, we take seriously our responsibility and role in consumers’ health and wellness. We’re incredibly proud of the trusted brands we’ve built and are confident that they will be strong assets for Nestlé.”
 
The transaction is valued at $5.75 billion on a cash free, debt free basis, representing a multiple of 3.1x net sales and 16.8x EBITDA as of March 31, 2021.