On December 14, Canadian supplement company Atrium Innovations completed its acquisition of Belgian omega-3 manufacturer Minami Nutrition. Minami markets 16 different omega-3 products, garnering most of its revenues from Benelux countries, the UK and Ireland. “We seek worldwide for acquisitions with brands and products that can reinforce our commitment to innovation and superior quality products,” said Pierre Fitzgibbon, Atrium’s president and CEO, in a December 15 press release. “And Minami's omega-3 clearly stands apart in this market category.” Atrium has been on an acquisition tear of late, claiming Canadian supplement company Trophic Canada for $11 million in March 2010 and West Palm Beach, Florida-based Garden of Life for $35 million in September 2009.
Atrium operates several other supplement manufacturers, most of them in North America. Its Pure Encapsulations and Douglas Laboratories brands are both standards in the practitioner sales channel, and its Nutri-Health brand markets digestive enzymes and probiotics direct-to-consumer. Atrium also operates a Pittsburgh-based custom manufacturer, Alacrea. Atrium will roll the Minami brand out in the United States through Garden of Life in spring 2011, and Trophic will launch the brand in Canada shortly thereafter.
Atrium paid $7.4 million in cash for Minami, with a potential $2.7 million earn-out payment due at the end of 2011 should Minami’s revenue growth reach 20%. Minami brought in approximately $6.7 million in European revenues in the last 12 months.
NBJ Bottom Line
Atrium has had experience and success carrying European brands across the Atlantic; in July 2007 the company acquired the popular German systemic enzyme formula Wobenzym, which has since found great purchase among U.S. consumers. The enzyme, which is targeted at joint and muscle health, is available in U.S. pharmacies and health food stores. The joint health market for supplements has been a bit stifled of late, with flat sales growth in 2009, though this is mainly attributable to sales declines in glucosamine and chondroitin and MSM supplements. Enzymes and fish oil, however, were both star performers in the joint health category in 2009.
And now is as good a time as ever to consolidate and focus one’s omega-3 stakes in the United States. NBJ pegs overall growth of fish oil supplement sales in the U.S. market at 17% in 2009, with $143 million in new sales. Said Atrium’s Fitzgibbon, “We focus upon and derive a large percentage of our revenues from specialty supplements, a high growth market segment of which omega-3 is part. This new high-end brand is complementary to the wide range of omega-3 products among our group. The objective is to leverage Atrium's multi-channel distribution and geographic capabilities to considerably increase the penetration level of the Minami brand to achieve its full potential.”