Clorox to acquire supplement portfolio company Nutranext for $700 million
Clorox will pay $700 million to acquire Nutranext, which generated sales of about $200 million in calendar year 2017. About 90% of the sales of the Florida-based Nutranext are in the US.
The transaction is subject to certain closing conditions such as customary regulatory approvals, and is expected to close in the company’s fiscal fourth quarter in the end of June 2018.
"I am very proud of the growth we have accomplished over the last thirty years," said Jose Minski, Nutranext founder and CEO said in a press release. "This growth has been possible thanks to our dedicated employees who have carried our values and mission to improve ourselves and the world around us."
Nutranext, formerly known as Wellnext (it rebranded in December 2017), has a line-up of brands including True Health, Rainbow Light, Champion, Blessed Herbs, Stop Aging Now, and its latest addition Neocell, the collagen specialist it acquired in August last year. It also has a contract manufacturing arm.
"I am excited Nutranext is joining the Clorox family, a company distinguished by its innovation and like-minded mission of developing products that enhance the lives of consumers every day,” Minski added. “I am confident that with Clorox, Nutranext brands are well positioned for the next phase of growth."
Adding more supplement brands to Clorox’s portfolio
"Adding Nutranext to our portfolio is consistent with our strategy to accelerate growth through acquisitions of leading brands in fast-growing categories with attractive gross margins and a focus on health and wellness," said Clorox Chairman and CEO Benno Dorer.
"We're looking forward to leveraging our proven capabilities in brand building, including innovation and digital marketing, as well as strong partnerships in retail and e-commerce to accelerate growth of Nutranext brands."
The acquisition will bring up the number of supplement brands in Clorox’s lineup. This currently includes probiotic brand RenewLife, and to some extent Burt’s Bees, which launched a plant protein product last May.