Atrium Innovations continued with its growth strategy by acquiring Garden of Life, a West Palm Beach, Florida-based supplement manufacturer with annual revenues of $52 million in a transaction that will initially total $35 million. Atrium will pay Garden of Life $32.5 million in cash, of which $12 million is coming from working capital, and $2.5 million will come in the form of newly issued common shares in Atrium. Atrium will also take on debt of $2.5 million with an adjustment payment that will be made at the end of fiscal year 2009. The transaction marks Atrium’s second major dietary supplement company acquisition in 2009; the company purchased Cottonwood, Arizona-based Nutri-Health Supplements LLC in January for an initial offering of $27 million.
Atrium hopes to boost its supplement sales in the natural & specialty channels with the acquisition. “By joining forces with Garden of Life, we strengthen Atrium’s footprint in the health and nutrition industry and rapidly expand our participation in a growing market segment,” said Pierre Fitzgibbon, Atrium's president and CEO. “This new distribution channel complements our strength in the healthcare professional segment. Together with our direct-to-consumer business, Atrium is well-positioned to respectively offer to each of these channels a portfolio of quality, science-based products that are specifically designed to meet our customers’ needs.”
Garden of Life’s management team will remain in place following the completion of the transaction. Garden of Life products will be manufactured in Atrium’s GMP-compliant facilities. “I’m confident that our alliance will be highly beneficial to both companies, as well as to the steadily growing number of consumers seeking high-quality products that they can rely on to help them stay healthy,” said Garden of Life CEO, Jordan Rubin.
Nutrition Business Journal details other mergers and acquisitions throughout the industry in the newly released 2009 Supplement Business Report. The 500-page report has more than 150 company profiles with revenue estimates for both privately and publicly held supplement companies operating in the U.S. market. Order your copy today.