The deal could pre-empt an IPO, which the KKR-backed manufacturer of vitamins and supplements filed for this month
Nestlé said it is in discussions to acquire all or part of The Bountiful Company, a New York-based manufacturer of vitamins and supplements of which private equity firm KKR is a majority shareholder.
The news comes a couple of weeks after the target company filed for an initial public offering on the New York Stock Exchange. The company set out to raise $100 million at a $6 billion valuation.
In the S-1 filing, The Bountiful Company told the US Securities and Exchange Commission that the business is “a pure-play branded leader in the highly attractive and growing global nutrition category”.
According to the S-1 filing, KKR and Carlyle remain the company’s largest pre-IPO shareholders.
The company reported net sales of more than $2 billion in the fiscal year of 2020 and claimed its manufacturing, sales and distribution platform is the largest in North America and one of the three largest globally.
KKR acquired a majority stake in The Bountiful Company in 2010 from Carlyle Group in a $3.8 billion deal. The equity capital for the transaction was primarily provided from KKR’s Americas XII fund.
As part of the deal, KKR appointed Paul Sturman as its president and chief executive.
The Bountiful Company has been in the market since 1971, and it took its current name following a rebranding strategy led by KKR and chief executive Sturman in 2017, leaving behind its original name of The Nature’s Bounty.
There are 14 brands in its portfolio, including Nature’s Bounty, Solgar, Osteo and Puritan’s Pride brands of vitamins and supplements.
The Bountiful Company also manufactures protein bars and powders and operates the Puritan’s Pride online platform selling supplements direct to consumers.
In the IPO filing, The Bountiful Company revealed that net sales grew to $2.78 billion in the fiscal year ending on 30 September, a 10% increase from the $1.88 billion recorded in the previous period.
Headquartered in Long Island, The Bountiful Company employs more than 4,500 people worldwide, and operates manufacturing, packaging, warehouse, distribution and administrative facilities throughout the US, Canada and the UK. The company also maintains offices overseas in China, Spain, South Africa and New Zealand.
Date published: 26 April 2021