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Nestlé completes Bountiful Co. acquisition

Josh Long

August 9, 2021

2 Min Read
Nestlé completes Bountiful Co. acquisition

Nestlé Health Science on Monday announced completing its acquisition of The Bountiful Co.’s core brands, including Nature’s Bounty. The deal solidifies Nestlé as a powerhouse in the nutritional supplements space.

Other Bountiful Co. brands now under Nestlé’s control include Solgar, Osteo Bi-Flex, Puritan’s Pride, Ester-C and Sundown. The acquired Bountiful brands generated net sales of $1.87 billion in the 12 months ending March 31, with EBITDA (earnings before interest, taxes, depreciation and amortization) of 18.3%, according to Nestlé.

"More people around the world are taking charge of their health, looking to vitamins, minerals, herbals and supplements to fill gaps or provide extra support," Nestlé Health Science CEO Greg Behar said in a press release. "Today we’re pleased to welcome 4,000 new employees into Nestlé Health Science with our acquisition of the key brands from The Bountiful Company. The acquisition gives us a broader range of trusted products and more ways to enhance the health of customers around the world."

On April 30, Nestlé Health Science announced a US$5.75 billion agreement to acquire the majority of The Bountiful Co.’s brands from KKR, a global investment firm. KKR in 2017 acquired a majority interest in The Bountiful Co. from The Carlyle Group. Carlyle Partners V and Carlyle Europe Partners III funds kept a minority stake in the nutrition company and participated in the sale alongside KKR.

Don Kerrigan, president of North America for The Bountiful Co., will be joining Nestlé Health Science as the company’s new CEO of VMHS [vitamins, minerals, herbal supplements] Health U.S., and he will report to Behar.

"Today’s announcement marks an important milestone in The Bountiful Company's journey and an exciting next phase for our well recognized, winning brands and the talented teams who have helped build them," Kerrigan said in the release. "I’m proud to be leading this powerful organization and know that together we will leverage our collective capabilities, brands and teams to further empower healthier lives through nutrition."

Nestlé Health Science’s other vitamins, minerals and supplements brands include Garden of Life, Vital Proteins, Nuun, Pure Encapsulations, Wobenzym, Douglas Laboratories, Persona Nutrition, Genestra, Orthica, Minami, AOV and Klean Athlete. In disclosing its half-year results for 2021, Nestlé reported Nestlé Health Science’s sales “grew at a double-digit rate, reflecting strong demand for vitamins, minerals and supplements and healthy-aging products.”

Through the acquisition of The Bountiful Co., Nestlé can build a “leading position” in the “fragmented category” for vitamins, minerals and supplements, which “has delivered the highest and most consistent growth in consumer health care over the past 10 years,” J.P. Morgan analyst Celine Pannuti stated in an April 30 equity research note.

“We are excited about the opportunity to harness the scale in this category on a global basis as well as online … where we see significant opportunities from self-medication, personalized online health and subscription models,” she wrote.

About the Author(s)

Josh Long

Associate editorial director, Natural Products Insider, Informa Markets Health and Nutrition

Josh Long directs the online news, feature and op-ed coverage at Natural Products Insider, which targets the health and wellness industry. He has been reporting on developments in the dietary supplement industry for over a decade, with a special focus on regulatory issues, including at the Food and Drug Administration.

He has moderated and/or presented at industry trade shows, including SupplySide East, SupplySide West, Natural Products Expo West, NBJ Summit and the annual Dietary Supplement Regulatory Summit.

Connect with Josh on LinkedIn and ping him with story ideas at [email protected]

Education and previous experience

Josh majored in journalism and graduated from Arizona State University the same year "Jake the Snake" Plummer led the Sun Devils to the Rose Bowl against the Ohio State Buckeyes. He also holds a J.D. from the University of Wyoming College of Law, was admitted in 2008 to practice law in the state of Colorado and spent a year clerking for a state district court judge.

Over more than a quarter century, he’s written on various topics for newspapers and business-to-business publications – from the Yavapai in Arizona and a controversial plan for a nuclear-waste incinerator in Idaho to nuanced issues, including FDA enforcement of the Dietary Supplement Health and Education Act of 1994 (DSHEA).

Since the late 1990s, his articles have been published in a variety of media, including but not limited to, the Cape Cod Times (in Massachusetts), Sedona Red Rock News (in Arizona), Denver Post (in Colorado), Casper Star-Tribune (in Wyoming), now-defunct Jackson Hole Guide, Colorado Lawyer (published by the Colorado Bar Association) and Nutrition Business Journal.

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