Nestle SA agreed to buy vitamin maker Bountiful Co. for $5.75 billion, becoming a world leader in the field of minerals and supplements, as the pandemic boosts demand for pills for health-conscious consumers.
KKR & Co. and Carlyle are selling the company for 16.8 times earnings before interest, tax, depreciation and amortization. Nestle said it expects the purchase to close in the second half and weigh on profitability this year.
Chief Executive Officer Mark Schneider dove into the field of vitamins and supplements in his first year as CEO in 2017 with the $2.3 billion acquisition of Atrium Innovations Inc. Predecessor Paul Bulcke had ruled out the segment, arguing that the business is too competitive to create products with pricing power. Nevertheless, Schneider rejected that idea and has focused on developing larger brands in the segment, seeing a market in high-spending health-conscious consumers.