{"id":112889,"date":"2021-04-26T16:50:33","date_gmt":"2021-04-26T16:50:33","guid":{"rendered":"https:\/\/fin2me.com\/?p=112889"},"modified":"2021-04-26T16:50:33","modified_gmt":"2021-04-26T16:50:33","slug":"nestle-in-talks-to-buy-natures-bounty-vitamins","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/nestle-in-talks-to-buy-natures-bounty-vitamins\/","title":{"rendered":"Nestle in talks to buy Nature's Bounty vitamins"},"content":{"rendered":"
ZURICH (Reuters) -Nestle is in talks to buy nutritional supplement maker The Bountiful Company, the Swiss food giant said on Monday, as it looks to move further into a health and nutrition sector that is growing faster than its traditional packaged food business.<\/p> Analysts expect a price tag of $5-$7 billion for Bountiful, which makes Nature\u2019s Bounty vitamins, Osteo Bi-Flex joint-care supplements and Puritan\u2019s Pride vitamins and supplements, but Nestle in its statement gave no indication of a price.<\/p>\n The acquisition would fit with the M&A strategy of Chief Executive Mark Schneider, the former Fresenius boss who has targeted several health companies since taking charge at Nestle in 2016.<\/p>\n \u201cNestl\u00e9 S.A. today announced that it is in discussions to acquire all or part of The Bountiful Company,\u201d Nestle said, confirming media reports but giving no further details.<\/p>\n Separately, Knorr soup maker Unilever said on Monday it would buy food supplements maker Onnit.<\/p>\n Nestle\u2019s approach for Bountiful, which is majority-owned by private equity firm KKR Co & Inc, came after Bountiful filed for a New York Stock Exchange flotation this month.<\/p>\n In 2020, Long Island-based Bountiful had sales of $2.07 billion, 10% higher than a year earlier. It increased its adjusted earnings before interest, tax, depreciation and amortization by 21% to $302.3 million.<\/p>\n In its 2019 results, before the pandemic struck, Nestle increased reported sales only by 1.2%, held back by sluggish performances in water, confectionary and prepared dishes.<\/p>\n \u201cThis is about diversifying the growth profile in Nestle and trying to get growth in areas other than coffee and pet care,\u201d said Bank Vontobel analyst Jean-Philippe Bertschy, who said a move for Bountiful made strategic sense for the world\u2019s largest packaged food company.<\/p>\n In the past five years, nutritional food sales have increased by an average of 5.8% per year, faster than the 4.7% rate of packaged foods, according to Euromonitor data.<\/p>\n Only 17% of the estimated $137 billion in annual global sales in nutritional food are generated in Europe, Middle East and Africa, offering scope for further expansion in the region.<\/p>\n Meanwhile, 17% of Bountiful\u2019s sales come form e-commerce, a faster growing retail channel than shops, while Nestle could leverage its distribution and marketing to increase sales further.<\/p>\n \u201cI think the health and wellness area will continue to be the focus of Nestle\u2019s M&A activity, because of the faster growth and higher returns,\u201d said Bertschy.<\/p>\n