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Nestle to acquire Atrium for $2.3bn

FBR Staff Writer Published 06 December 2017

Nestle has agreed to acquire Canada-based Atrium Innovations, a manufacturer of nutritional health products, for $2.3bn in an all-cash deal from a group of investors.

The acquisition is expected to extend the consumer healthcare portfolio of the Switzerland-based global food and drinks company.

Atrium’s portfolio includes probiotics, plant-based protein nutrition, meal replacements and a multivitamin range.

The company’s sales in the current year are expected to be around $700m. Atrium is currently owned jointly by a Permira Funds-backed firm, Fonds de solidarité FTQ and Caisse de dépôt et placement du Québec among others.

The Canadian firm says that its brands and business model are complementary with the science-based nutritional solutions of Nestlé. Its brands include Garden of Life, Pure Encapsulations along with specialty brands like Wobenzym, Genestra Brands, Orthica, AOV, Minami, Pharmax, Douglas Laboratories, Klean Athlete, and Trophic.

Atrium Innovations president and CEO Peter Luther said: “Since Atrium was established in 1999, we have been dedicated to providing premium-quality, science-based, professionally recognized products to consumers and healthcare practitioners.”

Luther added that Nestlé will provide Atrium with the resources to accelerate the growth of its brands and extend their reach worldwide.

For Nestle, the acquisition of Atrium supports its pursuit of growth opportunities across consumer healthcare while complementing its focus on its food and beverage segments.

Post transaction, Atrium will operate under Nestlé Health Science with its existing management team retained to handle the business.

Nestlé Health Science CEO Greg Behar said: “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.”

The acquisition is anticipated to be completed in the first quarter of 2018, subject to customary approvals and meeting of closing conditions.

Image: Nestlé Headquarters in Vevey, Switzerland. Photo: courtesy of Nestlé.