Atrium strengthens probiotics business with Nutri-Health acquisition
The acquisition, for a first consideration of $23.9 million followed by two additional earn-out payments based on Nutri-Health’s 2009 and 2010 EBITDA growth, gives Atrium a stronger foothold in the fast growing probiotics area.
Nutri-Health owns proprietary multi-probiotic blends, including 16 strains that are reportedly matrix encapsulated to survive stomach acid and deliver a active doses of active cell cultures per capsule.
During the past few years, NHS is said to have achieved approximately $27 million in sales for 2008, with the Nutri-Health brand is said to represent about 90 percent of the company’s total sales.
“We are very pleased to acquire Nutri-Health Supplements, an innovative and successful enterprise that is distinguished by a true culture of performance. Nutri-Health has built a loyal and rapidly growing clientele over the years by developing and marketing high quality, health professional-endorsed, specialized products,” said Pierre Fitzgibbon, president and CEO of Atrium.
“Buying Nutri-Health marks our first acquisition into the DTC segment with a company aligned with our values and objectives. NHS allows us to acquire complementary expertise in this market segment in which we had a limited business presence until now.
“This opens the door to promising, synergistic development opportunities within Atrium,” he added.
Strategy
The acquisition is said to be inline with the Canadian company’s business development strategy.
Last year, Atrium sold its active ingredients and specialty chemicals division to AXA Private Equity, heralding the start of a new era in which it will be focused solely on health and nutrition.
The company currently has a portfolio of finished products targeted towards growing segments for the food and supplements market, including healthy living and meeting the needs of a healthy population.
The company’s former ingredient’s division was sold for $166.4m and heralded a “means to execute our strategy to become the leader in high end nutritional supplements", said Atrium’s chairman, Pierre Laurin, following the company’s 2008 Q1 financial results.
