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.