The global investment firm that owns brands including Solgar has announced it has sold to Nestlé.
Nestlé and KKR have entered into an agreement in which Nestlé will acquire core brands of The Bountiful Company for $5.75bn. The transaction includes the high-growth brands Nature’s Bounty, Solgar, Osteo Bi-Flex and Puritan’s Pride, as well as the company’s US private label business. In a statement, it said these brands will be integrated into Nestlé Health Science, creating a global leader in vitamins, minerals and nutritional supplements.
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, which do not complement the Nestlé Health Science portfolio, 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.
KKR, primarily through its Americas XII Fund, acquired a majority interest in The Bountiful Company from The Carlyle Group in 2017. Carlyle Partners V and Carlyle Europe Partners III funds retained a minority stake in the company and are participating in the sale, alongside KKR.
Nestlé Health Science CEO, Greg Behar, commented: “Vitamins and supplements are a key part of our business and have contributed to strong growth acceleration. 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 US, while offering significant opportunities for geographic growth.”
Paul Sturman, President and CEO at The Bountiful Company, added: “Today’s announcement from Nestlé Health Science recognises the transformation of The Bountiful Company over the past three-plus years, as well as the collective value and capability of the organisation. I am incredibly grateful to the more than 4,500 colleagues around the globe who have worked tirelessly to get us to this point.”
Nate Taylor, Partner and Co-Head of Americas Private Equity at KKR, went on: “Paul and the entire The Bountiful Company team have built a global portfolio of brands that are positioned for sustained growth, with a great culture of innovation, accountability and pace of change We know that The Bountiful Company will add value to Nestlé and continue to enhance the health of the millions of consumers who use their products each and every day.”