Nellson Nutraceutical acquires Genysis Brand Solutions, expanding shake and bar capabilities
The combined company will have five manufacturing and R&D facilities specializing in powders and bars in both the US and Canada. Genysis’ affiliates, Dyad Labs and Sensapure Flavors, were not included in the acquisition and are now independent companies.
“Genysis has a presence in the pre-workout and BCAA market segments, and as such, will compliment the protein business that Nellson has a dominant share of,” Bart Child, Nellson’s SVP of commercial development, told NutraIngredients-USA.
The acquisition also allows for the new combined company to serve different types of customers. “We will have a small run capability, much smaller blenders than Nellson, that will allow us to service growing brands more efficiently,” Child added.
Genysis will operate as a subsidiary of Nellson. Its president, Adam Schwinghammer, will stay on as a key member of the executive management team. “We are excited about merging with Nellson and capitalizing on the respective strengths of the two companies in order to benefit our current and prospective customers.”
A bigger player in the thriving shakes, bars category
Acquisitions are a key strategy for Nellson’s parent company, the New York-based private equity firm Kohlberg & Company, LLC.
"Nellson and Genysis are highly complementary businesses, and we are pleased to capitalize on this unique opportunity to create a larger, more diversified company capable of better serving our combined customer bases," said Seth H. Hollander, partner at Kohlberg.
Through the merger, Nellson is penetrating the nutritional shakes and bar category even further—a category that is poised to hit $13.1 billion in 2012, according to data from market research firm Packaged Facts.
Antares Holdings provided Nellson with fully committed credit facilities sufficient to close the transaction. Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel to Nellson. Houlihan Lokey acted as financial advisor to Genysis.