Nutrition Business Journal

Atrium Innovations Acquires Nutri-Health Supplements

 

 

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.

NBJ subscribers interested in reading more of our coverage on the markets that Atrium and Nutri-Health compete in, should see:

Douglas Invests in Bioactives Development
Demand Builds for Beauty From Within
Direct Selling in the Nutrition Industry

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