Nestle has acquired supplements and vitamins manufacturer The Bountiful Company from KKR for $5.75 billion, according to press release. The companies expect to finalize the deal in the second half of the year.
Bountiful’s deal includes the entity’s Nature’s Bounty, Osteo Bi-Flex, Solgar and Puritan’s Pride brands.
The deal does not include brands such as Body Fortress, Pure Protein, Met-Rx, Dr. Organic, and Canadian over-the-counter business.
Nestle will pay 3.1 times the of the value of Bountiful’s sales and multiples equivalent of 16.8 times of EBITDA.
The acquired entities generated $1.87 billion in sales in the year to last month, and had an EBITDA margin of 18.3%.
Nestle expects the deal to make the company an industry leader and open up new prospects for geographical expansion.
Nestle and KKR stocks are currently gaining. NESN: SWX is up 0.073%, KKR: NYSE closed up 0.18%.