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VEVEY, Switzerland — Nestlé plans to acquire nutritional health product maker Atrium Innovations Inc. for $2.3 billion.
Plans call for Montreal-based Atrium, which is being purchased from a group of investors led by Permira Funds, to become part of Nestlé Health Science, Nestlé said Tuesday. Atrium’s current executive team, including president and chief executive officer Peter Luther, will continue to manage the business.
Nestlé noted that the acquisition reflects its efforts to seek out growth opportunities in consumer health care that will complement its focus on its high-growth food and beverage categories. Atrium’s 2017 sales are projected to be nearly $700 million.
Garden of Life natural supplements are Atrium’s largest brand.
“We value Atrium’s history as a highly successful company and welcome its 1,400 employees to the Nestlé family. Their brands are a natural complement to our consumer care portfolio, which offers nutritional solutions in the areas of healthy aging, healthy growing, gut health and obesity care,” stated Greg Behar, CEO of Nestlé Health Science.
“Atrium’s portfolio will extend our product range with value-added solutions such as probiotics, plant-based protein nutrition, meal replacements and an extensive multivitamin line, enabling consumers to address their health and wellness goals,” he noted.
Garden of Life, Atrium’s largest product line, is the No. 1 brand in the U.S. natural supplement industry, the companies said. Based in Palm Beach Gardens, Fla., Garden of Life makes certified-organic, non-GMO supplements old in more than 14,000 health food stores and online in the United States, as well as select markets internationally.
Meanwhile, Atrium’s Pure Encapsulations line of hypoallergenic, research-based dietary supplements is the top-recommended brand in the U.S. practitioner market. The Sudbury, Mass.-based brand’s products are free from common food allergens, GMOs, fillers, binders and artificial colors and are sold in the U.S. via health care practitioners, online and in pharmacies in several European markets.
“Since Atrium was established in 1999, we have been dedicated to providing premium-quality, science-based, professionally recognized products to consumers and health care practitioners,” Luther commented. “We are very pleased to be joining Nestlé Health Science as we share a common purpose of helping people lead healthier lives by providing good-for-you products made with the highest standards for quality and efficacy. Nestlé will provide Atrium with the resources to accelerate the growth of our brands and reach more people globally.”
Other brands in Atrium’s product roster include Wobenzym, Douglas Laboratories, Genestra Brands, Orthica, AOV, Minami, Klean Athlete, Pharmax and Trophic.
“Atrium’s established brands are in attractive categories and have the potential for continued strong growth as part of Nestlé through category, channel and geographic expansion,” Behar added. “It also represents additional offerings in the segment for non-GMO, organic and natural supplements, a fast-growing consumer trend, as well as a new sales channel.”
The transaction is expected to close in the 2018 first quarter, pending customary approvals and other closing conditions.
