Nestle is buying Canadian vitamin maker Atrium Innovations for $2.3 billion to expand its presence in consumer healthcare.
Company statement says that it will buy the maker of vitamins, probiotics and meal replacements from a group of investors led by Permira Funds.
About 80 percent of Atrium’s sales come from the United States, meaning there is still room to buy businesses elsewhere, such as the vitamins unit being sold by Germany’s Merck, which has a large presence in emerging markets and is also being looked at by Nestle.
Greg Behar, head of Nestle Health Science said,“We continue to look for opportunities in things that make sense in very disciplined fashion.”
“The purchase of Atrium, which will have $700 million in sales this year, will add to earnings immediately”, he added.
Nestle Health Science sells nutritional products for people with specific medical conditions.
Atrium has seven factories in the United States, Canada, Europe and Argentina. Its biggest brand is Garden of Life supplements. This is Nestle’s fourth purchase in recent months. It announced deals for Sweet Earth vegetarian foods and Blue Bottle coffee in September and Chameleon Cold-Brew coffee in November.
The purchase of Atrium is expected to close in the first quarter of 2018.