Nestlé has agreed to acquire privately-held dietary supplement manufacturer Atrium Innovations for $2.3 billion in cash. The deal, expected to close in the first quarter of 2018, will allow Nestlé to pursue growth opportunities in consumer healthcare to complement the company’s focus on its high-growth food and beverage categories.
Atrium’s brands are a natural complement to the Nestlé 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,” said Greg Behar, Nestlé health science CEO. “It also represents additional offerings in the segment for non-GMO, organic and natural supplements, a fast-growing consumer trend, as well as a new sales channel.”
Atrium’s 2017 sales are expected to reach almost $700 million. Upon closing, Atrium 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.
Atrium’s largest brand, Garden of Life®, is a leading brand in the U.S. natural supplement and manufactures certified organic, non-GMO supplements. Pure Encapsulations® is a full line of hypoallergenic, research-based dietary supplements, and is a leading recommended brand in the U.S. practitioner market. Pure Encapsulations’ product line is free from food allergens, GMOs, fillers, binders and artificial colors. Other specialty brands in the Atrium portfolio include Wobenzym®, Douglas Laboratories®, Genestra Brands™, Orthica®, AOV®, Minami®, Klean Athlete®, Pharmax and Trophic™.