Atrium Innovations, a manufacturer of science-based health and nutrition products, announced the acquisition of Nutri-Health Supplements, LLC (NHS) on Monday. NHS is a manufacturer of specialty supplements including probiotics and digestive enzymes.
Atrium will acquire NHS for a lump sum of $23.9 million, fully paid at the closing of the transaction. Atrium will also be responsible for two earn-out payments based on NHS’ 2009 and 2010 EBITDA growth. NHS reportedly achieved $27 million in sales in 2008, driven primarily by its proprietary multi-probiotic blends.
The acquisition will fit in with Atrium’s business development strategy as NHS markets to multiple sales channels and claims to be endorsed by health professionals. The Nutri-Health brand accounts for approximately 90% of NHS’ total revenues and is primarily sold via mail order and other direct-to-consumer channels. Pierre Fitzgibbon, President and Chief Executive Officer, commented on the deal, “Buying Nutri-Health marks our first acquisition into the [direct-to-consumer] segment with a company aligned with our values and objectives. NHS allows us to acquire complementary expertise in this market segment in which we had a limited business presence until now. This opens the door to promising, synergistic development opportunities within Atrium.”
Atrium reported annual revenues of $173 million in 2007. Third quarter 2008 public earnings statements showed a 48% revenue increase from the same period in 2007. Growth was attributed primarily to the acquisition of MCO Health, though the company experienced organic growth as well.
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