Probi acquires Nutraceutix
Probi to acquire Nutraceutix, strongly expanding its North American presence and capabilities, and announces rights issue of ca SEK 600 million.
Swedish Probi has announced that its US subsidiary Probi USA has signed an asset purchase agreement under which Probi will acquire the operations of the US probiotic company TNTGamble, doing business as Nutraceutix, for a preliminary cash purchase price of USD 105 million (corresponding to SEK 873 million) on a cash and debt free basis.
With this Acquisition, Probi will increase its market share in North America – the largest and fastest growing probiotic dietary supplements market in the world – more than three-fold, add important new technologies, manufacturing capabilities and customers, and create a strong platform for further acquisitions. The cash purchase price will be financed through available cash reserves, a credit facility and a bridge facility. The bridge facility will be repaid by proceeds from a proposed new share issue with preferential rights for existing shareholders of approximately SEK 600 million.
”I am very excited about this transforming acquisition. Nutraceutix is an excellent match for us. Probi and Nutraceutix have complementary business models, limited customer overlap and share strong entrepreneurial values. The acquision creates a strong platform to continue the growth story in the US and in the global market,” Peter Nählstedt, CEO, Probi.
“I cannot imagine a better combination of two well-respected organizations. 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,” says Tim Gamble, CEO, Nutraceutix.
Published: June 9, 2016