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WM Partners cleans its hands of Nutranext with Clorox offer
Posted on Monday, 12 March 2018 14:07
The Clorox Company has signed on the dotted line to acquire vitamin and dietary supplement group Nutranext from WM Partners for roughly USD 700.00 million.
For the investor, the deal provides an exit three years after its initial involvement in 2015.
WM Partners believes, with its influence, Nutranext has grown into a fully vertically-integrated nutraceutical company manufacturing and marketing natural supplement brands, nearly doubling its revenue and quadrupling its earnings before interest, taxes, depreciation, and amortisation (EBITDA).
Clorox, which has been expanding in the food replacement market as of late, recognises the target’s leading products including number two vitamin brand Rainbow Light, anti-stress and sleep minerals the Natural Vitality, and hair, skin and nails supplement Neocell.
Nutranext, formerly known as Wellnext, generated sales of USD 200.00 million in 2017, about 90.0 per cent of which came from the US.
The deal values the group at 3.5 times its annual sales and brings significant scale and breadth to Clorox’s dietary supplements business following its 2016 acquisition of RenewLife.
Closing is expected in the buyer’s fourth quarter ended 30th June 2018 and remains subject to regulatory approvals.
Clorox will finance the acquisition through a combination of available cash and debt financing, while maintaining a debt-to-EBITDA ratio within its target range of 2.0x to 2.5x.
Benno Dorer, chief executive of the acqurior, noted: “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.”
The US dietary supplement market is worth about USD 41.00 billion.
Clorox is a leading multinational manufactuer of consumer and professional products, mainly in the bleach and cleaning market including Pine-Sol, Liquid Plumr and Poett.
Its other operations range from Hidden Valley dressings and sauces, to Kingsford charcoal and Burt’s Bees personal care products.
Clorox posted sales of USD 6.00 billion in 2017, more than 80.0 per cent of which are generated from brands that hold the number one or two market share positions in their categories.
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