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Nestlé sweet on Atrium deal
Posted on Wednesday, 06 December 2017 10:44
Swiss food giant Nestlé is buying dietary supplements manufacturer Atrium Innovations for USD 2.30 billion in cash.

After the transaction, the Montreal-headquartered firm will become part of the acquiror’s health science division but continue to operate as an independent business, led by its existing management team.

Completion is expected in the first quarter of 2018, subject to customary closing conditions, including approvals from the relevant regulatory bodies.

Established in 1999, Atrium now has 1,400 employees and seven manufacturing facilities in the US, Canada, Europe and Argentina.

It has 13 brands in its portfolio, including Garden of Life, which it claims is the number one brand in the natural supplement industry, and Pure Encapsulations, which makes hypoallergenic dietary products.

The company was delisted in 2014, following its CAD 825.00 million takeover by a group backed by the Permira funds.

Chief executive Peter Luther said the sale will provide Atrium with “the resources to continue the strong growth of our brands and reach more people globally”.

Greg Behar, chief executive of the buyer’s health science business agreed, saying that the target’s brands “have the potential for continued strong growth as part of Nestlé through category, channel and geographic expansion”.

Behar added that Atrium’s brands provided “additional offerings in the segment for non-GMO [genetically modified organism], organic and natural supplements, a fast-growing consumer trend, as well as a new sales channel”.

Touted as the world’s largest food and beverage company, Nestlé already has more than 200 brands and a presence in 191 countries worldwide.

It reported net profit of CHR 4.89 billion (USD xx billion) for the six months ending June 2017, up from the CHF 4.10 billion for the same timeframe last year.

Listed on both Euronext and SIX Swiss Exchange, the conglomerate was founded in 1866 and had a market capitalisation of CHF 263.60 billion at 4th December 2017, the last trading day prior to the announcement.

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