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Nestlé To Acquire Brands Of The Bountiful Company And Expand Its Health And Nutrition Portfolio

Nestlé To Acquire Brands Of The Bountiful Company And Expand Its Health And Nutrition Portfolio
Nestle SA will be acquiring The Bountiful Company in a deal worth $5.75 billion.
Brands like Nature's Bounty, Solgar, Osteo Bi-Flex and Puritan's Pride are among the assets that the Swiss company will be purchasing through this deal, Nestle said on Friday.
The health and nutrition portfolio of Nestle is expected to be boosted by this acquisition which is expected to be completed by the second half of the year. The deal excludes The Bountiful Company's sports and active-nutrition brands.`
Nestle entered into an agreement with KKR for the brands of the number one pure-play leader in the highly attractive and growing global nutrition and supplement category. The deal will also include the United States private label business of The Bountiful Company
Nestle said that the acquired brands would be integrated into Nestlé Health Science which is expected to create a global leader in vitamins, minerals and nutritional supplements.
"Vitamins and supplements are a key part of our business and have contributed to strong growth acceleration," said Nestlé Health Science CEO Greg Behar. "This acquisition complements our existing health and nutrition portfolio in terms of brands and channels. It will establish Nestlé Health Science as the industry leader in mass retail, specialty retail, e-commerce and direct-to-consumer in the US, while offering significant opportunities for geographic growth," Behar added.
"Today's announcement from Nestlé Health Science recognizes the transformation of The Bountiful Company over the past 3+ years, as well as the collective value and capability of the organization. I am incredibly grateful to the more than 4,500 colleagues around the globe who have worked tirelessly to get us to this point," said Paul Sturman, President and CEO, The Bountiful Company. "As a leader in global nutrition, we take seriously our responsibility and role in consumers' health and wellness. We're incredibly proud of the trusted brands we've built and are confident that they will be strong assets for Nestlé," Sturman further said.
The deal will be done on a cash free, debt free basis.
In the last twelve months which ended on March 31, 2021, the total sales of the brand acquired by Nestle was at $1.87 billion with an EBITDA of 18.3 per cent. It is expected to be negatively affected by one off costs of integration of the brands – which in turn is expected to slightly dilute underlying trading operating profit margin of Nestle for 2021. But once synergies are fully implemented by 2024, that margin is expected to increase above the Nestle’s average.
Nestle is expected to boost its benefits and position in the prevention and treatment solutions to consumers globally by the combination of the core assets of The Bountiful Company and the expertise in science and innovation in health and nutrition of Nestle. 
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Christopher J. Mitchell

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