Orkla Health has acquired 100% of the shares in Healthspan Group Limited, a supplier of dietary supplements in the British market.
Established in 1996, Healthspan's portfolio comprises a wide range of dietary supplements and skin care products.
With around half a million active customers, 92% of the company's sales are made directly to consumers.
Orkla Health Purchases Healthspan
Healthspan offers a portfolio of more than 400 different products, with most sold under its own branding.
The group collaborates with a network of specialists and experts to identify market trends and offer an efficient organisational structure to bring new products to the market.
Commenting on the move, Orkla president and CEO Jaan Ivar Semlitsch, said, "This acquisition is a strategically important purchase for us along several dimensions. It supports our ambitions of establishing a stronger position in consumer health and it strengthens our position online."
"Healthspan will be operated as a stand-alone company under Orkla Health. At the same time, the company will be able to tap into Orkla’s strength and expertise to drive further growth. Through the acquisition of Healthspan, we are reinforcing our position in consumer health and establishing a new home market for Orkla Care," added Hege Holter Brekke, Orkla EVP and CEO of the Orkla Care business area.
Earlier in 2022, Orkla Health purchased health care brand Vesterålen Marine Olje AS.
Financial Details
Orkla Health is purchasing Healthspan from the estate of the founder Derek Stephen Coates, who passed away in 2020.
The parties have agreed on a purchase price of £65 million (€77.8 million) on a cash and debt free basis.
The agreement also includes the possibility of adding up to £20 million (€24 million) to the purchase price depending on the company’s results (EBITDA) in the next two financial years.
The current management team will continue to operate the business following the acquisition, Orkla added.
Healthspan has 170 employees and is based in Guernsey, and distributes products from centres in Great Britain, Ireland, and New Zealand.
In 2021, Healthspan had a turnover of £50 million (€60 million) and normalised profit of £4.7 million (€5.6 million) (EBITDA).
The majority of the group's turnover originates in Great Britain.
The company will be consolidated into Orkla’s financial statements as of 1 March 2022.
© 2022 European Supermarket Magazine – your source for the latest A-Brands news. Article by Conor Farrelly. Click subscribe to sign up to ESM: European Supermarket Magazine.