The sports nutrition and weight loss market has taken an upward turn on the M&A front in the New Year. Most notably, in January 2011, global whey supplier Glanbia—already owner of sports supplement leader Optimum Nutrition—acquired Bio-Engineered Supplements and Nutrition for $144 million.
Other smaller deals also surfaced in early 2011 on the private-equity front. TA Associates invested an undisclosed sum in Dymatize, with Imperial Capital advising. Rumors also surfaced about CytoSport being in play last year, with Goldman Sachs leading the shopping. PepsiCo, Nestle and GNC reportedly made bids of around $500 million for CytoSport (makers of the vastly popular MuscleMilk protein drink). And current conjecture posits that NEXT Protein's Designer Whey is also at play in the private-equity market, painting a good portrait of SNWL prosperity. Brian Smith of PCG Advisors recently told NBJ that "a good validation of the overall health of sports nutrition is the ramp up in private-equity interest."
NBJ Bottom Line
There is substantial growth slated for the SNWL sector in 2011. NBJ forecasts 10% growth for the market this year. As capital markets continue to soften, industry has illustrated the composure to obtain more than its fair share of the economic recovery.
NBJ explores the increasing financial activity, recent acquisitions and growing investor interest in the SNWL landscape in our 2010 Sports Nutrition & Weight Loss issue, which includes proprietary sales figures, manufacturing trends, company profiles, expert interviews and more. To order or become a subscriber, please visit the NBJ subscription page.
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