Nestle continues focus on health with $2.3B deal for supplements maker
December 06, 2017
Nestle has agreed to acquire Atrium Innovations, a maker of nutritional supplements under the Garden of Life brand, for $2.3 billion in cash. The move supports Nestle's recent focus on consumer health under new CEO Mark Schneider as the company faces pressure to improve its performance from activist shareholder Third Point Partners. Founded in 1999, Atrium is expected to reach $700 million in sales this year and immediately contribute to Nestle's earnings.
Atrium will now become part of Nestle Health Science, with its existing management team continuing to run the business under president and CEO Peter Luther from its corporate offices in Quebec. The acquisition is Nestle's 19th since the start of 2007 and second this year, per the PitchBook Platform. In September, it took a majority stake in specialty coffee roaster & retailer Blue Bottle Coffee at a $700 million valuation.