Nestlé has announced plans to acquire Atrium Innovations, a Canadian dietary-supplement business, in a $2.3 billion deal.
The company says that this move supports its “pursuit of growth opportunities” in the consumer health-care sector and adds to its extensive food and beverage portfolio.
The deal will see Quebec-based Atrium become part of Nestlé's Heath Science division, and the business will continue to be led by CEO Peter Luther.
“We value Atrium’s history as a highly successful company and welcome its 1,400 employees to the Nestlé family,” said Greg Behar, CEO of Nestlé Health Science.
“Their brands are a natural complement to our consumer-care portfolio, which offers nutritional solutions in the areas of healthy ageing, healthy growing, gut health, and obesity care,” Behar continued.
The transaction is expected to close in the first quarter of 2018.
Atrium manufactures a range of vitamins and dietary supplements, and its largest brand, Garden of Life, is sold in more than 14,000 health-food stores and online in the US.
The company, which also produces speciality brands such as Wobenzym, Douglas Laboratories, Orthica and Klean Athlete, is anticipating sales of nearly $700 million in 2017.
“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,” added Behar.
“Its established brands are in attractive categories and have the potential for continued, strong growth as part of Nestlé through category, channel and geographic expansion,” he concluded.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.