Nestlé announces acquisition of Atrium Innovations

Atrium Innovations, a company specializing in development, manufacturing and the commercialization of innovative, science-based natural health products has announced that it will be acquired by Vevey, Switzerland-based Nestlé for $2.3 billion in cash. Global investment firm Permira, Fonds de solidarité FTQ and Caisse de dépôt et placement du Québec assisted in the acquisition.

“We are very pleased to be joining Nestlé Health Science as we share a common purpose of helping people lead healthier lives by providing good-for-you products that are made with the highest standards for quality and efficacy,” Peter Luther, president and CEO of Atrium said. “Nestlé will provide Atrium with the resources to continue the strong growth of our brands and reach more people globally.”

Montreal-based Atrium will continue to operate as it has prior to the acquisition, with no changes to any of its brands which include, Garden of Life, Pure Encapsulations, Wobenzym, Douglas Laboratories, Genestra Brands, Orthica, AOV, Minami Klean Athlete, Pharmax and Trophic. The company also distributes UNDA and Wild Rose brands and believes the acquisition will allow them to expand and compete effectively in the global marketplace

Over the last four years Atrium also has undergone changes, which included:

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  increasing revenue and EBITDA significantly through new product development and channel growth, particularly e-commerce;


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  accelerating the international expansion of leading brands, including Garden of Life and Pure Encapsulations;


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  strengthening the leadership team with strategic hires from world-class companies; and


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  enhancing operations across the company, including implementing best-in-class manufacturing and quality and regulatory compliance.

“We are tremendously proud to have helped Atrium expand its leadership position and become one of the fastest growing companies in the global vitamins and supplements industry, driven by the popularity of market-leading brands Garden of Life and Pure Encapsulations. The successful partnership with Atrium underscores our ability to combine our strong consumer brands and healthcare expertise and draw on our international network to back ambitious consumer healthcare businesses to expand globally while creating attractive returns for the Permira Funds’ investors. The growing interest in healthy living and wellness is one of our key investment themes across both our consumer and healthcare sectors and we will continue to look for opportunities to partner with innovative businesses. We are confident that with the backing of its new strategic owner Nestlé, a company with a 100-year history operating in Canada and over 1,000 employees in Québec, Atrium will continue its track record of success and commitment to Canada,” John Coyle, partner at Permira, said

Morgan Stanley, RBC Capital Markets and William Hood & Company, a division of AXIA Capital Markets, acted as financial advisers and Skadden, Arps, Slate, Meagher & Flom and Stikeman Elliott acted as legal advisers. The transaction is expected to close in the first quarter of 2018.