Health & Nutrition Industry 2010 Census - Trends in Mergers & Acquisitions

Health & Nutrition Industry 2010 Census
Trends in Mergers and Acquisitions

Marco V. Galante, Principal
Marco V. Galante, Principal
J.H. Chapman Group, L.L.C.
J.H. Chapman Group, L.L.C.
773-693-4800
773-693-4800
mgalante@jhchapman.com
mgalante@jhchapman.com

©2011 J.H. Chapman Group, L.L.C.
This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient without permission from the J.H. Chapman Group.

Contents

Objective of Census . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Sub-Segment Analysis and Commentary .................................... 10
Healthy, natural, organic, functional foods and beverages . . . . . . . . . . . . . . . . . . 12
Health and nutrition ingredients suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Contract manufacturers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Branded nutritional supplements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
OTC and natural personal care products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Licensing and joint ventures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Retailers and distributors of these products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Conventional ingredients suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Recent Financings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
J.H. Chapman Group, L.L.C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

J.H. Chapman Group, L.L.C. makes no representation as to the accuracy and completeness of the information provided.
The information in this presentation is obtained from various public sources.
In the listings of Acquirers and Targets, the columns are blank if amounts are unavailable.
Please do not reproduce it for third parties, but notify us of others who would like to receive it and we will contact them directly.
2

Objective of Census

Provide for market participants a Census of M&A activity and
trends in the sub-segment of their industry, within the $5 million to
$100 million transaction value range.

Identify, where applicable, future trends that are likely to have an
influence on transaction activity and valuations.

3

Executive Summary

M&A Transactions on strategic transactions supporting acquirers’ core
directions not just for growth, but also to increase
Within the total of the food industry, 2010 M&A trans- their product and application offering and to expand
actions increased by 20% over the previous year, with their share of the market. Many larger companies
the “Food Processor” category providing the single (such as Elan Nutrition, Garden of Life, Tree of
largest increase and more dairy activity than usual. Life, Balance Bar, and Airborne) acquired small to
Transactions were buoyed by acquisitions such as medium sized companies.
Kraft’s winning battle to acquire Cadbury and NBTY’s In the health and nutrition category, there were a
acquisition by Carlyle. Overall, corporate strategics total of 87 transactions in 2010 (excluding
and financial sponsors continued to be active. licensing, joint ventures, financing, retail and
The Monday, January 10, 2011 announcement of distribution), an increase of 72% over 2009 and a
DuPont’s acquisition of Danisco, for a transaction substantial increase of 23% over the peak of 2006.
value of $6.3 billion, may be a sign that the multi- The organic/natural food and beverage sector was
billion M&A activity that has taken place in the the largest contributor, at 48% of the total, followed
nutritional ingredients market over the last several by health and nutrition ingredients suppliers at
months is continuing in 2011. 20%.

The subsequent information provides a synopsis of There is a significant resurgence of licensing and
M&A activity in the health and nutrition sector, joint ventures. Although lower than 2009, this trend
followed by the statistics for each identified segment. is a strong indicator of continuing alternative
strategic options for companies seeking growth.
Health and Nutrition
Organic and Functional Food & Beverage
A distinct rebound in M&A took place in 2010,
with most transactions in the natural, organic and This category continues to be the largest M&A
functional foods sectors of the industry. Focus was contributor accounting for 48% of the transactions,

4

Executive Summary (cont’d)

with an increase of 46% above 2009 and the Financing
highest number of transactions since 2006.
There has been some recent easing of the capital
Health and Nutrition Ingredients Suppliers markets, and 2010 financings (47) compare to
2009 (44). More bank credit is becoming
As the second largest transaction contributor, this available at attractive interest rates.
category was 142% higher than in 2009, and
almost on par with the average annual number of Economic and Market Environment in 2010
transactions during 2006 through 2008.
The U.S. Economy
Branded Nutritional Supplements
The year 2010 began and ended well! Despite
Transactions in 2010 were 85% higher than in certain volatility, growth in financial markets
2009, and the 2010 total was almost equivalent to exceeded expectations at the beginning of the
the average transaction numbers during 2006 year, then the economy relapsed in mid-year, but
through 2008. substantially recovered by year-end with stronger-
than-expected growth for the year as a whole.
Licensing & Joint Ventures
While the recovery now in progress is not yet
The second half of 2010 saw a significant much cause for cheer, the country enters 2011
resurgence of licensing and joint ventures – a total with an improved economic and financial
of 40 transactions. Although 23% lower than the situation despite continuing weak consumer
52 in 2009, this is a continuing strong indicator confidence, the housing trouble spot and
that companies seeking growth are pursuing unemployment continuing at a rate of 9.8%.
means in addition to traditional M&A.

5


A significant factor against this backdrop is that cash reserves and strong balance sheets, better
food manufacturers are facing considerable and availability of credit at attractive rates and
increasing pressure from rising commodity prices, potentially lower valuations.
which are making an impact on margins that are
being squeezed as consumers continue to resist Acquirers are focused on strategic transactions
price increases. that support their core directions and are likely to
produce measurably improved results.
North American M&A Activity
Acquisitions are expected to build the “bottom
M&A and investment activity is on the upswing line” with a good return on the invested capital.
as evidenced by the return of the large strategic Examples include:
acquirers that, having experienced low organic • Brazil – JBS’ acquisition of Pilgrim’s Pride,
growth due to the recessionary environment, are and Mafrig Food’s acquisition of Keystone,
pursuing acquisitions aimed at bolstering low the largest privately held meat products
growth rates. With rebounding stock prices and company.
substantial cash reserves, those strategics • Mexico – Group Bimbo’s acquisition of
consummated a large number of transactions. Sara Lee’s bakery operation, and Sigma
Kraft’s acquisition of Cadbury and Pepsico’s Alimentos’ purchase of Bar S Foods.
purchase of Russian dairy, baby food and juice
processor Wimm-Bill-Dan are but two examples. • Europe – Ebro’s sale of its dairy business to
Lactalis, and Arla’s merger with German
Global M&A Activity Hausa-Milch.
Cross-border M&A soared in 2010 and will be a A strong indicator of heightening activity in 2011
major activity again in 2011. Forces fostering the is the interest expressed in PAI Partners’ stake in
surge include leaner enterprises with substantial

6


Yoplait, evidenced by ongoing bids by Lactalis, Private Equity Groups (PEGs)
Nestle, General Mills, Pepsico and others.
Current financing terms at low interest rates make
Emerging Markets for challenging investing, even in a slow growth
environment. Capital is still restrictive, but
U.S. companies appear to be the most popular available for transactions where borrowers have
market suitors for emerging market bidders demonstrated outstanding fundamentals,
including China. In turn, U.S. companies are consistent earnings, a capital structure that does
seeking to expand their global presence, not over-leverage the company and a meaningful
particularly in India, while Indian midmarket to amount of equity.
large size companies are leveraging their financial
strength to aggressively access overseas markets. With tempered market growth and minimum
equity contributions in excess of 40%, it will
Examples of Indian M&A activity in the U.S. become difficult to expect annual investment
include: returns above 20% at “reasonable” purchase
• Cambrex Corporation’s acquisition of prices. Hence PEGs’ increased holding period the
Genera Pharmaceuticals for $20 million past few years because of their inability to exit
• Norwest Venture’s investment in Tutor investments.
Vista
These points notwithstanding, PEGs were very
• Zensar Technologies’ $66 million acquisi- active as buyers and sellers alike in 2010 where
tion of Akibia the B2B products and services industry sector
• Dr. Reddy’s acquisition of accounted for approximately one-third of their
GlaxoSmithkline’s U.S. oral penicillin total transactions, with B2C products and services
facility and product portfolio providing the largest increase.
• Dabur India’s $100 million acquisition of
Data for 2010 shows renewed interest in large
U.S.-based Namaste Laboratories and its
transactions, including those made possible by
three subsidiaries.
7


increased availability of debt and a build-up of vegetables have increased, albeit at a much lower
capital in PE investor funds. Equally, PE investors rate, than that of other commodities.
have displayed a larger appetite for the Food and
Beverage Industry sector than in prior years. Food Safety
Active investors have included KPS Capital The recently legislated food safety measures will
Partners, Wind Point Partners, Catterton Partners have an impact on the operation of food
and Mistral Equity Partners. processors and distributors, with consequences on
Raw Materials and Food Prices the bottom line.

Climate change, mixed harvest results, rising Market Trends and the Consumer
populations and scarcity of arable land are just a All-Natural Food and Beverage
few factors that will continue to impact the costs
of raw materials, placing increasing price In addition to consumers’ growing use of products
pressures on manufacturers and retailers in the with healthy attributes, they are also seeking a
years ahead. wider range of products made with all-natural
ingredients. A number of major food and beverage
Given recent historically low food prices, price manufacturers have indicated that they will offer
increases need to be viewed on a relative basis. an increased number of all-natural products. An
However, consumers are paying up to 55% more indicator of this trend is PepsiCo’s recent
for some basic items than three years ago. Corn announcement that in 2011, 50% of their Frito-
prices have increased 45% in the last three Lay products will be made from all-natural
months. Soybeans, coffee, cocoa and others have ingredients.
also increased substantially. While there is
volatility, the global trend is definitely upward. Other Trends Include:
Snacks are becoming more functional, giving
On a year-over-year basis, prices of staples such
snacks a nutritional edge.
as bread, eggs, meat and even fruits and
8


Gluten-free is being viewed by the consumer as a consumers attempt to adopt behaviors that
healthy alternative. improve their health and avoid diseases.
Non-GMO is set to become the hot new label.
Given the growing role and importance of
The Consumer nutraceuticals, it is likely that an increased
number of pharmaceutical companies will become
Economic-driven necessities have impacted participants in the functional ingredients sector,
consumers’ behavior and forced “adaptability,” driven by the convergence of food and pharma for
creating behavior changes that are likely to remain personalized health and nutrition.
for the foreseeable future – by and large
consumers now think defensively. Their choices In keeping with these developments, Nestle has
will be different and driven by “sales,” special passed on some of the bigger food industry trans-
offers, promotions and discounts, and not actions to specifically invest in its own nutrition
necessarily just by brands or store choice. unit with the singular objective of becoming the
leader in health science and nutrition.
People are working beyond retirement – either
due to financial need or because they have This trend is further reinforced in Europe by the
become accustomed to a particular lifestyle. EIB’s (European Investment Bank) financing to
Danisco and Novozyme to support research,
Current unemployment rates notwithstanding, development and innovation in the area of enzyme
continuing and increased penetration of automated applications and other health-focused ingredients.
technology will inevitably replace workers – for
better or worse. Consequently, 2011 may see
certain jobs permanently displaced by technology.
The market for healthy/functional foods and
dietary supplements will see significant growth as

9

Sub-Segment Analysis and Commentary

Health & Nutrition focuses on those “sub-segments” at the intersection of the
giant healthcare, personal care and food industries.

Personal Care

Natural
Personal Care

Healthcare Nutritional
Supplements

Ingredients Suppliers
Functional
OTC
Foods

Natural and Food
Pharmaceuticals Organic Foods

10

Sub-Segment Analysis and Commentary
Number of Transactions

Number of Transactions
Segme nt 2006 2007 2008 2009 2010

Healthy, Natural, Organic and Functional Foods and Beverages 25 22 24 29 42
Health and Nutrition Ingredients Suppliers 21 20 17 7 17
Contract Manufacturers 3 2 4 3 7
Branded Nutritional Supplements 14 12 14 7 13
OTC & Natural Personal Care Products 7 6 2 5 8
Total 70 62 61 51 87

Licensing and Joint Ventures (Started in 2008) NA NA 21 52 42
Retailers and Distribution 13 12 6 2 8
Financings 25 19 23 44 47

11

Sub-Segment Analysis
Healthy, Natural, Organic, Functional Foods and Beverages

Dairy and Probiotic transactions dominate second half of 2010

12


Dairy and Probiotic transactions dominate second half of 2010
French conglomerate Groupe Danone acquired 51% of ProViva, a Swedish probiotic digestive health brand.
ProViva has sales in excess of $50 million. In addition to its equity participation, Danone secured a 10-year
global license agreement with the inventors. Eyeing the frozen yogurt market, Danone announced their
acquisition of one of the leading frozen yogurt manufacturers, YoCream for approximately $103 million.

The Hain Celestial Group entered the yogurt market with their acquisition of 3 Greek Gods, makers of
authentic Greek-style products. With sales of approximately $10 million in 2009, 3 Greek Gods’ yogurt is
thicker and creamier than standard yogurt and fits squarely into Hain’s portfolio of natural and ethnic brands.

Acquired by Dean Foods in 1999, UK-based Rachel’s Yogurt, was sold to French dairy producer Groupe
Lactalis in August 2010. Established in 1966, Rachel’s is a premium brand and the second largest organic
dairy brand in the UK.

In their second divestiture in 6 months, Dean Foods sold Mountain High Yogurt business and Mountain
High brands to General Mills. Mountain High will become part of General Mills’ Yoplait USA division and
continue to operate under the Mountain High name.

Yoplait acquired Canadian-based yogurt-maker, Liberte from Swander Pace Capital, Roynat Capital and the
management team. Liberte is Canada’s leading natural and organic yogurt brand.

Goat cheese company, Cypress Grove Chevre (based in Arcata, CA) was acquired by Emmi Holding (USA),
Inc. a division of Emmi, founded as a dairy owned cooperative in 1907, the largest milk processor in
Switzerland.
13


Trans.
Sales Multiple of EBITDA Multiple of
2010 Acquirer Target Value
(US $M) Sales (US $M) EBITDA
(US $M)
W estern European Sunny Delight juice
Dec. Orangina Schweppes
drink
Dec. Meyer Natural Foods Dakota Beef
Dec. High Road Capital Partners Panos Brands 22.0
Dec. Yoplait Liberté 175.0
Dec. New Image Group Somnaceutics
Nov. General Mills Mountain High Yoghurt
Nov. W eston Foods Ace Bakery 110.0
Nov. Danone YoCream International 103.0
Nov. Umami Sustainable Seafood Baja Aqua Farms
Sept. Lactalis Ebro's dairy business
Aug. Emmi Cypress Grove Chèvre 10.0
Aug. Usana Health Sciences BabyCare Limited 62.7 15.0 4.2
Aug. Cott Corporation Cliffstar 569.0 100.0 5.7
Aug. Lactalis Rachel's Yogurt
Aug. Lion Capital Picard Surgele 1970.0 1440.0 1.4
Aug. Nestle Vitaflo 42.0
Aug. SAIF Partners Huiyuan Juice
Aug. Danone Proviva 50.0
July Gertrude Hawk Chocolates Drew's All Natural
July T he Hain Celestial Group 3 Greek Gods 10.0
June Heart Health Blue Gold Beverages
Where available, data is b eing provided.

14


Trans.
2010 Sales Multiple of EBITDA Multiple of
Acquirer Target Value
(Cont'd) (US $M) Sales (US $M) EBITDA
(US $M)
June Darwin Private Equity Plum Baby 15.0 22.0 0.7
June Danone Unimilk
June Hain Celestial Group Churchill Food Products Ltd.
May Hearthside Food Solutions Golden Temple (Cereal Division)
May Coffee Holding Co. Inc. Organic Products Trading Company
May Hain Celestial Group W orld Gourmet
May Empire Kosher Kosher Valley
April E&A Industries Udi's Healthy Foods
April Coca Cola Innocent
April China Haisheng Juice Holdings Yitian Group
April Sweet Tea Leaf Tradewinds Beverage
March Mach One W hite Hat Brands
March T reeHouse Foods Sturm Foods 660.0 340.0 1.9
March Fresh Harvest Products, Inc. AC La Rocco Pizza 1.5
Feb. Kore Go All In
Feb. North Castle Partners Flatout, Inc.
Feb. Raisio Glisten 29.7
Feb. Diamond Foods Kettle Foods 615.0 250.0 2.5
Jan. Malt-O-Meal Farina Mills Brand
Jan. Shashi Foods MJ's Fine Foods
Specialty Foods India's healthcare nutrition
Jan. Nestle India 6.3
business

15


Trans.
(US $M)
Dec. DS Waters Owaters LLC
Dec. Attune Foods Uncle Sam and Erewhon brands
Dec. Danone Danone Clover
Nov. Brynwood Partners VI L.P. Balance Bar Company (from Kraft Foods)
Oct. Hain Celestial Group Infinitea Kombucha
Oct. Food Collective Helen's Kitchen and Organic Bistro
Sept. Pulmuone Monterey Gourmet Foods
Sept. Full Motion Beverage Performaxx Brands, Inc (Energize Brand)
Aug. Full Motion Beverage Mojava
Aug. AMI Brands Embodi
Aug. Pepsico Amacoco
Aug. Foster Farms Dairy Humboldt Creamery
July Skinny Nutritional Corp. "Skinny" Trademarks
June Fresh Harvest Products Organic Chef
June Renaissance Food Group Really Cool Food Company
June Beverages Holdings LLC Bossa Nova
June Dean Foods Alpro 458.0 366.0 1.3
June Dinewise Home Bistro
June Nutrition Solutions (Atkins) Bora Bora
April Swander Pace Applegate Farms
BAZZA High-Energy Tea trademark from
March BYB Brands, Inc.
Cooper Tea Company

16


Trans.
(US $M)
Feb. Andromeda Acquisition Corp. Galaxy Nutritional Foods, Inc. 6.8 24.8 0.3 1.2 5.7
Feb. Lifeway Foods Fresh Made Dairy 14.0 10.0 1.4
Feb. M&K Acquisitions Gleukos, Inc.
Feb. Nest Collective Plum Organics
Frucor Beverages Group Ltd (from Groupe
Feb. Suntory 775.0 270.0 2.9
Danone SA)
Jan. Otsuka Pharmaceuticals Nutrition & Santé
Jan. Hilco Equity Partners Niman Ranch 47.8
Jan. T ivall (a division of Osem Group) Foodtech International 20.0

17


Trans.
(US $M)
Oct. Osem Group Tribe Mediterranean Foods 57.0 32.0 1.8
Oct. Pepsico Spitz International Company
Sept. Green Mountain Coffee Roasters Tully's 40.0 30.4 1.3
Sept. Ian's Natural Foods Inc. Healthy Handfuls LLC
Aug. Aventura Equities Inc. Byers Food Inc.
Aug. Promax Nutrition Corp. Pure of Holland LLC
Aug. SunOpta Pure Nature Organics
July W essanen So Good 11.7
July Olympus Partners Ann's House of Nuts Inc.
July Campbell Soup Co. Country Gourmet Foods
June General Mills Humm Foods
June Meyer Natural Angus Coleman Natural Foods
May Pepsico V Water
April SunOpta Tradin Organics 120.0
April T he Hain Celestial Group Daily Bread, Ltd.
April T SG Consumer Partners MonaVie
March Nature's Products Inc. Champion Nutrition
March T he Hain Celestial Group MaraNatha and SunSpire Brands 40.0
Pilgrim's Pride Corporation (Turkey
March T he Hain Celestial Group
Operation)
Feb. Coca-Cola Honest Tea

18


Trans.
(US $M)
Feb. Coca-Cola NutriJoy Inc.
Feb. Robertet Group Plantes Aromatiques du Diois
8th Continent (A General Mills and Dupont
Feb. Stremicks Heritage Foods
JV)
Jan. Meyer Natural Angus Laura's Lean Beef Co. 150.0

19


Trans.
(US $M)
W holesome and Hearty Foods Company
Nov. Kellogg's
(Gardenburger brand)
Nov. Kellogg's Bear Naked 20.0
Oct. Amish Naturals Schlabach Amish Wholesale Bakery
Oct. Amish Naturals Prima Pasta
Oct. Clearlight Partners Apple and Eve
Zero Debt Bottling Corp. (a.k.a. 505
Aug. Creo Capital Partners
Southwestern)
Aug. T he Hain Celestial Group Plainville T urkey Farm 30.0
July ConAgra Alexia Foods 35.0
July Nestle Novartis Medical Nutrition 2500.0
Vialat (70% of its fresh dairy activity in
May Group DANONE
Chile)
May Clearly Canadian Beverage Corp. My Organic Baby 2.5
May Coca Cola Glaceau 4100.0 355.0 11.5
May T he Hain Celestial Group Tofu Business of WhiteWave Foods
March Integrated Biopharma BevSpec (Syzmo Brand)
Feb. Clearly Canadian Beverage Corp. DMR Food Corporation
Feb. Rich Products GLP Free Manufacturing
Susquehanna International Group
Feb. U.S. Mills
(SIG) Investments
Jan. Coca Cola Fuze Beverage
Jan. Catterton Partners CoolBrands Dairy, Inc.

20


Trans.
(US $M)
Eskimo Pie, Chipwich brands, Real Fruit
Jan. Dreyer's Grand Ice Cream trademark and Eskimo Pie foodservice
business (Coolbrands)
Jan. Health Sciences Group Kalahari Tea
Jan. ICBS DNA Distribution (maker of GO-JI Plus)

21

Health and Nutrition Ingredients Suppliers

DSM expands its reach in natural products
After a nearly 2-year hiatus from the health and nutrition sector, DSM returned,
acquiring two companies in the sector in the last four months of 2010, focusing in on
higher value nutritional ingredients as opposed to low-margin bulk chemicals. In
September 2010, DSM acquired Microbia from Ironwood Pharmaceuticals. Microbia
claims that it has developed a technology platform that enables it to produce high-
quality, natural carotenoids (including ß-carotene and canthaxanthin), nutritional
products and other specialty materials and chemicals from renewable resources.

On the heels of this acquisition, DSM acquired Martek Biosciences for $1.5 billion. With
$450 million of annual revenue and 600 employees, Martek offers fatty acids and
nutrition ingredients to companies including baby-formula maker Mead Johnson
Nutrition Co. and Kellogg Co. The company, in its efforts to move beyond infant
Omega 3
nutrition, acquired supplement manufacturer, Amerifit in early 2010.

Omega 3 companies
Trygg Pharma AS, a company jointly owned by Aker BioMarine ASA, a Norwegian biotechnology
company, and Lindsay Goldberg, a New York-based investment fund, acquired all of the shares in
EPAX AS from Austevoll Seafood ASA. EPAX AS is a leading supplier of concentrated, marine-
derived omega-3 formulas.

Expanding beyond protein products and omega-3 fish oil, Omega Protein acquired Cyvex Nutrition,
suppliers and marketers of premium branded ingredients to dietary supplement manufacturers.
22


Trans.
(US $M)
Dec. DSM Martek 1087.0 450.0 2.4
Dec. Omega Protein Cyvex Nutrition
Sept. DSM Microbia
Sept. Solbar Green Planet Farms 7.8
Martek Biosciences' manufacturing plant in
Sept. Alltech 14.0
W inchester, KY
Aug. T rygg Pharma AS EPAX AS 91.0 51.2 1.8
July Marco Hi-Tech Reducol Assets (from Forbes Medi-tech)
June Novus International IQF Group
June BASF Cognis 3833.0 3215.0 1.2 450.0 8.5
May Viterra 21st Century Grain Processing 90.5
March Lallemand Health Ingredients Lal’Food
March H2 Equity Partners Kirin Agribio Company
Nutra Cea (Natural Glo, Satin Finish, and
March Manna Pro Products 0.7
Max-E-Glo Brands and Trademarks)
March Institut Rosell-Lallemand DSM (LAFTI range of probiotic strains)
NutraCea's cereal ingredient
Feb. Kerry Group 4.0
business
Albion Laboratories, Inc. (Animal Nutrition
Feb. Novus International
Division)
Jan. Kemin Industries Soda Feed Ingredients

23


Trans.
(US $M)
Nov. Symrise (Germany) Futura Labs
Oct. Advitech Botaneco
Sept. Qualsec Vitamin Spice
Aug. Naturex Natraceutical
March Burgundy Botanical Cognis' botanicals extract business
Feb. Mach One Corporation Ceres Organic Harvest 8.0 20.0 0.4
Jan. Chr. Hansen Urex Biotech

24


Trans.
(US $M)
Nov. Biorigin PTX Food Corp.
Oct. Danisco GraceLink Ltd. (Glucagel brand)
Sept. RFI Ingredients W ilsey and Sons
Qufu Shengwang Stevia Biology and
Sept. Sunwin International Neutraceuticals
Science Company
Aug. DSM Provexis (30% purchased) 2.0
Aug. Glanbia Optimum Nutrition 315.0 185.0 1.7
July Besins Healthcare S.A. Olympian Labs
July Dynova Laboratories SiCap Industries
July Rousselot PEPTAN
June All American Pharmaceutical Laurel Dairy
May Premium Ingredients International Bulk Pharmaceuticals Inc.
April Iranex Group Bio-Serae 11.0
March Cognis InterMed Discovery
March NutraCea Irgovel 14.0
Feb. Barentz Europe Vitablend Holding
Jan. Eurogerm Leag 5.8
Jan. Naturex Berkem's "Actifs Innovants" division 14.0 5.6 2.5

25


Trans.
(US $M)
Dec. Chr. Hansen Medipharm
Dec. Natrol, Inc. Plethico Pharmaceuticals Limited 81.0
Dec. Naturex Chart Corporation
Nov. Frutarom RAD Technologies 4.1 1.5 2.7
Tat Nisasta (Galam and Tat Nisasta, a Turkish
starch, glucose and isoglucose manufacturer, have
Nov. Galam
formed a partnership to meet the increasing global
demand for fructose)
Oct. Galam Group Atomer S.L.
Oct. Novozymes Biocon's enzyme business 115.0 27.0 4.2
Pizzey's Milling (Omega 3 ingredient
Sept. Glanbia
business)
Sept. Natraceutical Cevena Bioproducts 2.8
July Avesthagen Renaissance Herbs
May Gadot Biochemical Industries Ltd. Pharmline Holding Inc. (85%) 37.0
May Lonza S.A.M. Electron Technologies
First Israeli Turnaround Enterprise
May Solbar (51% stake) 19.6
Fund
May Naturex HP Botanicals 3.0 3.8 0.8
MDB Twello BV (operates under the name
April Barentz Europe
Fa. L.I. Frank - Fa. Wed. W. Miedendorp)
Chinook Group Limited (certain choline
March Balchem Corporation
chloride business assets)
Tempo Canada (expansion of strategic
Feb. Lipid Nutrition
partnership)
Feb. Univar's Czech Ekozym
Jan. Naturex Hammer Pharma 13.0 10.1 1.3 1.2 11.2
Jan. Polifenoles Naturales National Bioscience Corp 26
This document contains proprietary and confidential information of J.H. Chapman Group and may not be distributed or discussed beyond the original recipient withoutWhere available, data isChapman Group.
permission from the J.H. b eing provided.

Contract Manufacturers

SunOpta returns
• SunOpta, a producer and distributor of natural food products, acquired Edner of Nevada, a maker of
fruit snack bars. The fourth quarter of 2010 marks the return of SunOpta as an active acquirer of
ingredient companies and related business, after a relatively quiet period since the beginning of 2008
when the company was faced with a class action lawsuit over mis-stated inventories in its berry
operations.
Interest in South Africa
• Netherlands-based Danisco announced their acquisition of Research Solutions, a South African
company known for their expertise in customized ingredient solutions, particularly in dairy. This
marks the second transaction in South African’s health and nutrition industry in the last 12 months.
In December 2009, SunOpta entered into a Joint Venture with Specialized Protein Products, a South
African-based soymilk/soy powder manufacturer.

Edner of Nevada

27


Trans.
(US $M)
Nov. SunOpta Edner of Nevada 4 10 0.4
Nov. UAS Labs APN Labs
Aug. Danisco Research Solutions
July National Enzyme Company Sora Laboratories
April Pharmachem AmeriFill
April ConAgra Elan Nutrition
April Milk Specialties Global Protient’s Dairy Processing Facility

Trans.
(US $M)
Aug. Herbalife Micelle Laboratories
Acquired two additional gelatin production
April CapsCanada
facilities
March Milk Specialties Global Edan Naturals

28


Trans.
(US $M)
Nov. Joshua Partners LLC Medicia Holdings LLC
MSC Animal Nutrition (A division of
Oct. Manufacturing Facility
Milk Specialties Global)
Sep. Perrigo JB Laboratories 44.0 70.0 0.6
Jul. Probio Gelkaps

Trans.
(US $M)
Jan. Atrium Biotechnologies Inc. AquaCap Pharmaceutical, Inc. 21.5 3.6 6.0
T he Qualicaps Group (The Carlyle
Jan. Pharmaphil, Inc.
Group)

29


The return of Private Equity Groups (PEGs)
The Carlyle Group re-entered the health and nutrition sector with its acquisition of NBTY. In 2005, the global
alternative asset management firm acquired Chinese contract manufacturer Shionogi Qualicaps Group, and
through that portfolio company acquired Pharmaphil in 2007. NBTY makes nutritional supplements and
vitamins under the brands Nature’s Bounty, Vitamin World, and others.

Atkins Nutritionals, a portfolio company of North Castle Partners, was acquired by Roark Capital Group, an
Atlanta-based private equity firm. Roark has a focus on consumer products, direct marketing and retail. Their
previous investments include Pet Valu, Seattle’s Best Coffee, Aunt Anne’s and Moe’s Southwest Grille.

Levine Leichtman Capital Partners (LLCP) announced that it has partnered with management in its acquisition
of Santa Cruz Nutritionals, a leading manufacturer of gummy-based nutritional products and dietary
supplements from Swander Pace. Swander Pace acquired Santa Cruz Nutritionals as part of the Harmony Foods
buyout, and sold the Harmony Foods Retail division to Diamond Foods in 2006. LLCP’s previous consumer and
retail investments include Quizno’s, Cici’s Pizza and Overhill Farms.

30


Trans.
(US $M)
Dec. Atkins Nutritionals Roark Capital Group 170.0
Dec. Atrium Innovations Inc. Minami Nutrition 7.4 6.7 1.1 1.3 5.5
Dec. GlaxoSmithKline Maxinutrition Group Holdings 250.0 56.0 4.5
Nov. Levine Leichtman Capital Partners Santa Cruz Nutritionals
Cataline LifeSciences (Bariatric
Aug. Metagenics
Advantage)
July Carlyle Group NBTY 4000.0 2600.0 1.5 500.0 8.0
June T horne Research Diversified Natural Products
June Danone Medical Nutrition 62.0 16.0 3.9
May Vitacyclix, LLC Freeman Industries
April Baird Capital Partners New Vitality
March Atrium Innovations Trophic Canada 11.0 7.5 1.5
Jan. International Vitamin Corporation Inverness Medical Innovations 63.4
Jan. Martek Amerifit Nutrition Inc. 200.0

31


Trans.
(US $M)
Oct. GF Capital Private Equity Fund Airborne
Sept. Atrium Innovations Garden of Life 35.0 52.0 0.7
NataFort and NataChew and related U.S.
Sept. Mission Pharmacal
patents from W arner Chilcot
Aug. Alticor Metagenics
Feb. Sergeant Chomp
Jan. Atrium Innovations Inc. Nutri-Health Supplements 24.0 27.0 0.9
Jan. Genesis Pharmaceuticals Hongrui Pharmaceuticals

32

Health & Nutrition Industry 2010 Census - Trends in Mergers & Acquisitions

Health & Nutrition Industry 2010 Census - Trends in Mergers & Acquisitions

Recommended

Recommended

More Related Content

Similar to Health & Nutrition Industry 2010 Census - Trends in Mergers & Acquisitions

Similar to Health & Nutrition Industry 2010 Census - Trends in Mergers & Acquisitions (20)

Health & Nutrition Industry 2010 Census - Trends in Mergers & Acquisitions