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The Swedish biotechnology firm has acquired U.S. probiotics supplier Nutraceutix for a preliminary price of $105 million.
Swedish probiotics biotechnology firm Probi AB has acquired U.S. probiotics supplier Nutraceutix (Redmond, WA) in a move that will triple Probi’s sales in North America and double its sales overall. With a preliminary cash purchase price of $105 million, the acquisition is set to close within four months.
Nutraceutix, which boasts manufacturing facilities near Seattle and Denver, posted net sales of $34 million in 2015 following double-digit percentage sales growth in recent years, according to Probi’s announcement. In addition to its more than 30 strains of industrialized probiotics, Nutraceutix also holds the patent for BIO-tract, a proprietary delivery technology designed to protect probiotics against harmful stomach acids, and LiveBac, a proprietary manufacturing process for manufacturing tablets with probiotics and other sensitive ingredients.
The acquisition was made in line with Probi’s strategic priorities to expand its reach in the large and rapidly growing North American probiotics market, which grew by 13% in 2015 alone, Probi noted, citing Euromonitor data. And with the purchase of Nutraceutix bringing Probi’s net probiotic sales in North America to more than $50 million (based on preliminary 2015 figures), the acquisition has effectively tripled Probi’s sales in North America.
“I am very excited about this transforming acquisition,” said Peter NÃ¤hlstedt, CEO of Probi. “Nutraceutix is an excellent match for us. Probi and Nutraceutix have complementary business models, limited customer overlap, and share strong entrepreneurial values. This acquisition creates a strong platform to continue the growth story in the U.S. and in the global market.”
Nutraceutix also brings 173 active U.S. customer relationships to Probi as part of the acquisition, according to the announcement.
“I cannot imagine a better combination of two well-respected organizations,” said Tim Gamble, CEO of Nutraceutix. “With highly complementary expertise, assets, product offerings, and a shared strategic focus on quality-conscious growth, I envision an outstanding future for the new entity. The transaction will result in the creation of a global leader in the probiotics and probiotic dietary supplement space, and will open up a wealth of new opportunities for the company, its employees, and its customers.”
Probi’s headquarters will continue to remain in Lund, Sweden, while the main manufacturing facility will be in the United States. The company will now have approximately 180 employees worldwide.
Nutritional Outlook Magazine