Interest rates remain at a 20-year high as the Federal Reserve indicated in July that it might be willing to lower rates in September. Mergers, acquisitions, and financing in the nutrition world has continued, albeit at a slower pace than the era of “cheap money” that followed the 2008 financial crisis.

Scott Steinford, founder of Trust Transparency Consulting, compared VMS M&A activity and financing to the housing market. While deals are still taking place, it typically takes more work to “make the magic happen.”

“The impact of the supply chain and consumer sentiment towards supplements, post-pandemic, is causing some issues with the multiples applied or pricing evaluations,” said Steinford. “Sellers who did not exit at the end of the pandemic are struggling to meet the Enterprise Values imagined in 2022. The psychological impact of this reduction in value is causing many who contemplated an exit to delay a while longer until the multiples return, or a consistent Revenue and EBITDA calculation can be achieved.”

Supply chain issues lingered longer than expected and inflation spiked pricing, causing more downward pressure on profits and, subsequently multiples and valuations, he added.

“While downward price pressures and higher interest rates made the financial investors’ positions more difficult, the silver lining might be the strategics. Smart strategics were able to capitalize on the bespoke organizational marketing trend and the less vibrant PE investor activity. Pharmavite, IFF, ADM and Sanofi are some examples of significant strategic acquisitions post-pandemic.”

A break in lending rates will certainly help the investor market, Steinford noted, but it won’t happen overnight.

“A single rate cut probably will not have a significant immediate impact on the M&A market,” he said, “but the more rate cuts that occur will likely improve the overall activity of investor firms. Additionally, PE investors are likely to take advantage of lessening inflation and more consistent valuation metrics. Going forward, the valuations will be less impacted by the spikes and drops of recent years caused by the pandemic surge of VMS consumption and profit pressures caused by the resulting supply chain issues and the inflationary economy.”

As businesses and investors wait for some rate relief, here’s a look at some of the top deals through the first 7 months of 2024.

Stay up to date with all the latest financial deals and other industry news by subscribing to our free newsletter. 

---

KD Pharma to Acquire dsm-firmenich’s Marine Lipids Business
The transaction includes the MEG-3 fish oil product portfolio and two associated production sites in Canada and Peru.

Doctor’s Best Acquires Viactiv Brand
Viactiv specializes in high-potency calcium and magnesium chews.

Suja Life Acquires Slice Soda Brand to Relaunch with New Formula
The fruit-flavored soda, introduced in the 1980s, will be revamped with pared-down, clean ingredients.

CoreFX Ingredients Acquires Connoils
CoreFX’s acquisition of the delivery technology specialist will expand the company’s portfolio and development capabilities.

Simply Good Foods Company to Acquire OWYN for $280 Million
Among the fastest-growing RTD protein shake brands, OWYN’s 2024 net sales are expected to be about $120 million.

Curaleaf Completes Acquisition of Cannabis Producer Northern Green Canada
The deal is seen as vital to Curaleaf’s international expansion strategy.

Arla Foods Ingredients to Acquire Volac’s Whey Nutrition Business
The acquisition will play a significant role in future plans for enhanced product offerings in the performance, health, and food sectors.

Goli Nutrition Avoids Bankruptcy with Acquisition Deal
Goli said the deal, which is subject to court approval in Quebec and the U.S., has the full support of its lenders.

Ingredion Leads Investment Round in Sugar-Reduction Startup Better Juice
Partnership will accelerate advanced technology for naturally reducing sugar in the U.S.

Nutrabolt Leads Investment in Top Greens and Superfoods Brand Bloom Nutrition
Capital will help fuel demand-generation activities, product innovation, and expand internal capabilities to support business growth.

Organic Mushroom Producer M2 Ingredients Receives Private Equity Investment
Meaningful Partners leads funding round to accelerate distribution and marketing of Om brand and scale manufacturing.

Lallemand Finalizes Acquisition of Evolva, Swiss Biotech Company
Evolva’s proprietary precision fermentation tech offers a strategic fit with Lallemand’s yeast-based technology.

Dr. Reddy’s Acquires MenoLabs Portfolio of Nutraceutical Brands
The brands include MenoFit, MenoGlow, Happy Fiber, Well Rested, Athena’s Shield, Goodness Glow, and Keep Glowing Gorgeous.