CANADA – Nestle has announced its agreement to acquire privately-held Atrium Innovations, a global leader in nutritional health products, from a group of investors led by Permira Funds for US$2.3 billion in cash.
According to the company, Atrium with its corporate offices in Quebec, Canada, will become part of Nestlé Health Science, upon closing of the deal.
“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.
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,” said Greg Behar, Nestlé Health Science Chief Executive Officer.
This move supports Nestlé’s pursuit of growth opportunities in consumer healthcare to complement the company’s focus on its high-growth food and beverage categories.
The company’s existing management team will continue to manage the business, led by Peter Luther, Atrium Innovations President and Chief Executive Officer.
“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.
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,” Behar added.
Atrium’s 2017 sales are expected to reach almost US$700 million as its largest brand, Garden of Life, manufactures certified organic, non-GMO supplements that are sold in more than 14,000 health food stores and online in the U.S., as well as select markets internationally.
“Since Atrium was established in 1999, we have been dedicated to providing premium-quality, science-based, professionally recognized products to consumers and healthcare practitioners.
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,” said Peter Luther.
The transaction is expected to close in the first quarter of 2018 following the completion of customary approvals and closing conditions.