Goli Nutrition Inc. entered an agreement to be acquired by a group of investors that includes Group KPS, a healthcare company in Latin America that currently distributes Goli products in Mexico; Bastion Capital, a mid-market investment firm; and one of the company’s original founders.

The deal, which allows Goli to avoid bankruptcy in Canada, is part of a process under the Companies’ Creditors Arrangement Act (CCAA) in Canada. The company obtained an initial order from the Superior Court of Quebec on March 18, which provides for a stay of bankruptcy proceedings that will allow the company to move forward with the transaction.

Goli said the deal, which is subject to court approval in Quebec and the U.S., has the full support of its lenders. In the meantime, the company said operations will continue uninterrupted, and it will continue to deliver products to customers, distributors, and retailer partners worldwide, the company said.

Company History

Launched in 2019 by Michael Bitensky and Deepak Agarwa, Goli Nutrition is a Certified B Corp known for its apple cider vinegar gummies. Goli has over 5 million customers on its direct to consumer platform, along with long-standing strategic partnerships with U.S. retailers.

Nutrition Business Journal estimated Goli’s 2021 sales at $438 million. But the company has been hit with several lawsuits, including class-action suits related to allegedly fraudulent health claims.

Additionally, Goli faced a dispute with its contract manufacturer Better Nutritionals, which filed for Chapter 11 bankruptcy in December 2022 after it added manufacturing capacity for increased production requests from Goli that never materialized.

‘Long-Term Potential’

Group KPS is a healthcare company with an extensive distribution network in Latin America. Bastion Capital has a track record of financing and supporting successful consumer-based businesses.

“Group KPS is a long-standing distributor of Goli products, and we see strong long-term potential in the company’s iconic brand, exceptional product quality, and high repeat purchase rates across its loyal consumer base,” said Felipe Preciado, CEO of Group KPS. “We are excited to enter into this acquisition to enable Goli to unlock new growth opportunities and do what it does best in bringing innovative products to consumers worldwide.”

The transaction will allow Goli to continue to operate, and innovate, better positioning the company for success and sustainable future growth, the company said.

As part of the transaction, Goli said it is retaining members of the original management team “who bring a deep understanding of the business and a history of success in the industry, and who are committed to carrying out Goli’s mission of delivering high-quality, efficacious products and making health simple, enjoyable and delicious.”