Nutrition Business Journal has maintained a comprehensive database of transactions in the nutrition industry since 1996. This has proven to be a valuable tool for tracking deal flow & activity, identifying buyers and sellers, comparing deal structures, performing valuations, establishing benchmarks and many others uses for financial and strategic consultants and executives in the nutrition industry. NBJ's M&A Report 2005 includes:
- Profiles of 625 deals detailing each firm involved, sales statistics and valuation multiples where available, and deal rationale.
- Yearly reviews of M&A activity as well as product category and sales channel reviews.
- Each review includes details on the top deals and valuation statistics to aid the reader in understanding the historical and current drivers of transaction activity.
In 2000, aggressive M&A activity (over 200 transactions in 2 years) compelled NBJ to produce its first report on M&A deals and trends in the nutrition industry. During 2001 and 2002 however, sales growth and deal activity slowed significantly. At the time, many claimed the demise of the supplement industry as “hockey stick” growth scenarios did not pan out and the expected double-digit growth in the mass market never materialized. Understandably, acquirer appetite weakened, and NBJ captured only 109 deals in the NBJ M&A database in 2001 and 2002. In 2003, however, nutrition industry growth climbed back up to 8.8%, it’s highest level since 1998, triggering a new series of deals in 2004, a year in which nearly 100 transactions transpired illustrating a renewed interest in partnering absent from the nutrition industry since 2000.
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- 1. ACKNOWLEDGEMENTS
- 2. EXECUTIVE SUMMARY
- 3. MARKET OVERVIEW
- 3.1. SUPPLEMENT INDUSTRY
- 3.1.1. The Supplement Industry Shows Signs of Recovery
- 3.1.2. Growth forecast at 4%
- 3.1.3. Consumers: a slippery bunch
- 3.2. FUNCTIONAL FOODS
- 3.3. NATURAL & ORGANIC FOODS
- 3.4. NATURAL PERSONAL CARE
- 4. M&A IN THE NUTRITION INDUSTRY
- 4.1. 2004 OVERVIEW
- 4.1.1. North Castle leads recapitalization of Leiner Health Products
- 4.1.2. Nutrition Industry Consolidation Trends in 2004
- 4.1.3. North Castle Partners Sells EAS to Abbott’s Ross Products Division
- 4.1.4. Weider sells Weider to Weider
- 4.1.5. Hain-Celestial snatches up Jason Naturals, seeds speculation of roll-up strategy
- in NPC
- 4.1.6. Ripplewood & Activated Holdings settle on Shaklee
- 4.2. 2003 OVERVIEW
- 4.2.1. Valuations & Number of Deals Hold Steady in 2003
- 4.2.2. Fortunes Shift Following Major Supplement Deals
- 4.2.3. Consolidation: Where Do We Stand? A Product Category Review
- 4.2.4. Organic/Natural Foods See Corporate and Institutional Investments
- 4.2.5. NBTY Cracks $1 Billion in Sales; Royal Numico Completes U.S. Exit
- 4.2.6. Taking Low Carb to the Next Level
- 4.2.7. Nutraceutical and Bio-One Add to Vertical Integration Plans
- 4.2.8. Nellson and Hormel Acquire Protein Ingredient Suppliers
- 4.2.9. ZonePerfect Sells for More Than Three Times Sales
- 4.2.10. Valuation Landscape Changing for Supplements
- 4.2.11. Developments for Leaders in Contract Manufacturing
- 4.3. 2002 OVERVIEW
- 4.3.1. M&As Reconfigure the Industry
- 4.3.2. Venture Funds Invest in Nutritional Ingredients
- 4.4. 2001 OVERVIEW
- 4.5. 2000 OVERVIEW
- 4.6. 1999 OVERVIEW
- 4.7. 1998 OVERVIEW
- 4.8. 1997 OVERVIEW
- 4.9. VENTURE CAPITAL IN THE NUTRITION INDUSTRY
- 4.9.1. VCs Still Have Capital to Invest; Corporate Funds Seek Technology
- 4.9.2. Posco BioVentures Includes Nutrition Companies in Biotech Search
- 4.9.3. Technology Venture Fund Gives Unilever a West Coast Presence
- 4.9.4. The Shansby Group eyes New Investments
- 4.9.5. North Castle Partners Reflects on Successes, Challenges
- 5. VALUATION TRENDS BY SEGMENT & SALES CHANNEL
- 5.1. SUPPLEMENTS
- 5.1.1. Valuating a Supplement Company
- 5.1.2. IdeaSphere Acquires Twinlab out of bankruptcy
- 5.1.3. Rexall-Sundown Acquisition Brings NBTY Close to the Top
- 5.1.4. Bio-One’s Vertical Integration & Acquisition Strategy
- 5.2. RAW MATERIAL & INGREDIENT SUPPLY
- 5.2.1. Roche Acquisition, New Products Fuel Growth For DSM
- 5.2.2. Choline, Microencapsulation & Acquisition of DCV Inc. Boost Balchem’s Sales
- 5.2.3. Cargill Invests In Beverage Technology
- 5.2.4. CreAgri Snags Hard-to-Get VC Investment
- 5.3. NATURAL & ORGANIC FOODS AND BEVERAGES
- 5.3.2. Oregon Chai Sells to Kerry Group after VC Investment
- 5.3.3. Horizon Purchase Boosts Dean to Top of Organic Sales League
- 5.4. FUNCTIONAL FOODS & BEVERAGES
- 5.4.1. Pepsi’s Strategy - Acquire Functional Brands
- 5.5. NATURAL PERSONAL CARE
- 5.5.1. Consolidation Comes to the Natural Personal Care Channel
- 5.5.2. Smaller deals
- 5.5.3. Hain Implements Changes After Acquiring Jason Natural Products
- 5.5.4. Hain to Put Marketing Resources Behind Simplified Brand Image
- 5.6. RETAIL CHANNEL
- 5.6.1. NBTY Acquires Health & Diet Group - GNC Stores in U.K.
- 5.6.2. GNC Pumps Up Sales Under New Ownership
- 5.6.3. Bear Stearns Converts Sutton Place, Hay Day Chains To Balducci’s
- 5.7. DIRECT CHANNELS
- 5.7.1. Internet
- 5.7.2. Multi-Level Marketing
- 5.7.3. Practitioner Channel
- 5.8. NATURAL PRODUCTS DISTRIBUTION
- 5.9. GLOBAL M&A TRENDS
- 5.9.1. Europe
- 5.9.2. Dansk Droge Fortifies Position in Scandinavia and Eastern Europe
- 5.9.3. Bio-One Expands in China
- 5.9.4. Retail Deals: Whole Foods Enters Europe, NBTY Grows European Chain
- 5.9.5. Hain and Kerry Crossing the Pond
- 6. DIRECTORY OF NUTRITION INDUSTRY MERGERS & ACQUISITIONS
- 6.1. SUPPLEMENT MANUFACTURERS & MARKETERS
- 6.2. NATURAL & SPECIALTY SUPPLEMENT RETAILERS
- 6.3. RAW MATERIALS & INGREDIENT SUPPLY
- 6.4. PUBLISHING & MEDIA FIRMS
- 6.5. SUPPLEMENT PRIVATE LABEL COMPANIES & CONTRACT MANUFACTURERS
- 6.6. PRACTITIONER SUPPLEMENT MANUFACTURERS & MARKETERS
- 6.8. NETWORK/MULTI-LEVEL MARKETERS
- 6.9. MAIL ORDER/CATALOG COMPANIES
- 6.10. INTERNET E-TAILERS
- 6.11. NATURAL, ORGANIC & FUNCTIONAL FOOD COMPANIES
- 6.12. NATURAL & NUTRITION PRODUCTS DISTRIBUTION
- 6.13. NATURAL, ORGANIC & FUNCTIONAL BEVERAGE COMPANIES
- 6.14. TESTING COMPANIES
- 6.15. OTHER DEALS
- 7. INDEX
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