On December 5, Nestlé announced that it agreed to acquire privately held Atrium Innovations, a global leader in nutritional health products, from a group of investors led by Permira Funds for $2.3 billion in cash. Atrium’s 2017 sales are expected to reach almost $700 million.
The move supports Nestlé’s pursuit of growth opportunities in consumer health care to complement the company’s focus on its high-growth food and beverage categories. The transaction is expected to close in the first quarter of 2018 following the completion of customary approvals and closing conditions.
Upon closing, Atrium, with its corporate offices in Quebec, Canada, will become part of Nestlé Health Science. Its existing management team will continue to manage the business, led by Peter Luther, Atrium Innovations president and CEO.
“We value Atrium’s history as a highly successful company and welcome its 1,400 employees to the Nestlé family,” said Greg Behar, Nestlé Health Science CEO. “Their brands are a natural complement to our Consumer Care portfolio, which offers nutritional solutions in the areas of healthy aging, healthy growing, gut health and obesity care. Atrium’s portfolio will extend our product range with value-added solutions such as probiotics, plant-based protein nutrition, meal replacements and an extensive multivitamin line, enabling consumers to address their health and wellness goals.
“Atrium’s established brands are in attractive categories and have the potential for continued strong growth as part of Nestlé through category, channel and geographic expansion,” Behar added. “It also represents 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.”
Atrium’s largest brand, Garden of Life, is headquartered in Palm Beach Gardens, FL, manufactures certified organic, non-GMO supplements that are sold in more than 14,000 health food stores and online in the U.S., as well as select markets internationally. Pure Encapsulations is a full line of hypoallergenic, research-based dietary supplements, and is the No. 1 recommended brand in the U.S. practitioner market. Headquartered in Sudbury, MA, the Pure Encapsulations product line is free from common food allergens, GMOs, fillers, binders and artificial colors and is sold in the U.S. via health care practitioners, online as well as in pharmacies in several markets in Europe.
“Since Atrium was established in 1999, we have been dedicated to providing premium-quality, science-based, professionally recognized products to consumers and healthcare practitioners,” said Luther. “We are very pleased to be joining Nestlé Health Science as we share a common purpose of helping people lead healthier lives by providing good-for-you products made with the highest standards for quality and efficacy. Nestlé will provide Atrium with the resources to accelerate the growth of our brands and reach more people globally.”
The remainder of the Atrium portfolio includes strong specialty brands like Wobenzym, Douglas Laboratories, Genestra Brands, Orthica, AOV, Minami, Klean Athlete, Pharmax and Trophic.
For more information, visit www.nestle.com.