Atrium Innovations, a publicly traded, Canada-based developer and marketer of dietary supplements, announced on March 18 their purchase of Trophic Canada, a leading manufacturer and distributor of supplements for Canada’s health food store market. For a cash value of $11 million, Atrium acquired both of Trophic’s brands, Trophic and Wild Rose, which together account for an annual revenue of about $7.5 million, marketing about 150 products in Canada’s natural & specialty retail channel. The purchase marks Atrium’s second foray into the natural & specialty channel, having earlier acquired U.S. natural retailer Garden of Life in September of 2009.
For the last few years Atrium has primarily focused its growth strategy on acquisitions, now controlling assets in three different market channels: the healthcare practitioner channel (including Douglas Laboratories and Pure Encapsulations), direct-to-consumer (including Arizona-based Nutri-Health Supplements) and, as of just recently, natural & specialty retail (with Trophic and Garden of Life). “We are looking to grow through acquisitions within these three channels,” said Atrium’s President and CEO Pierre Fitzgibbon in an interview with Nutrition Business Journal. “We are known for making our acquisitions win-win deals for everyone involved.”
NBJ Bottom Line
Atrium’s growth strategy appears to be paying off. Not only can Atrium boast a 2008 NBJ Growth in Large Companies Award, but in 2009 the company expanded revenue an impressive 17.1% to $319.7 million on the strength of its acquisitions, taking full advantage of a boom year for supplements to enter the natural & specialty retail channel. And the ability to leverage assets across market channels allows large companies like Atrium to ensure healthy profit-margins in a turbulent economy. Trophic should prove to be a sound Canadian counterpart to Garden of Life, and, as Fitzgibbon asserted in a recent press release, “provide Atrium with a stronger and complementary foothold and greater visibility in the Canadian market.”
NBJ outlines other acquisitions, mergers and growth strategies throughout the industry in its 2009 Supplement Business Report. The 500-page report contains more than 150 company profiles with revenue estimates for both publicly and privately held supplement companies operating in the U.S. market. Order your copy today.
Related NBJ links:
Two Up, One Down in a 2009 Supplement Firm Earnings Roundup
Atrium Solidifies Standing in Natural and Specialty Retail with Garden of Life Acquisition
Fitzgibbon: Research Bar Being Raised for Supplements