Mumbai: Private equity firm Bain Capital will acquire Vitabiotics, UK’s leading nutraceutical company, bolstering its presence in the expanding global market for nutrition, vitamins, minerals, and wellness supplements. The deal will encompass the entire enterprise, including the UK business and the wider VB Group, comprising Meyer Organics in India, and operations in Africa, including VB Egypt.
The deal size wasn’t disclosed. The transaction valued Vitabiotics at $850-900 million, said people familiar with the matter.
ET was the first to report April 21 about Bain Capital emerging as the frontrunner for Vitabiotics. Two other contenders TPG Capital and EQT opted out of the competitive bidding process, ET had reported.
Founded in 1971 by Kartar Lalvani, a British-Indian businessman, Vitabiotics is currently led by his son, Tej Lalvani – also known for his role as an investor on BBC’s Dragon’s Den – who serves as chief executive officer. Its portfolio of brands includes Pregnacare, Perfectil, Wellman, Wellwoman, Osteocare, and the Ultra range.
The NRI founders have been seeking a valuation of around £900 million ($1-1.2 billion). However, waning competitive interest is likely to impact the final price, ET had reported.
A group of PE investors including EQT Partners, TPG Capital, as well as Indian drugmaker Lupin Ltd are in discussions to acquire Vitabiotics, ET first reported last December.
Several other Indian drugmakers including Mankind Pharma and Zydus Wellness had also evaluated the asset but didn’t pursue further due to the steep valuation ask.
Vitabiotics UK exports to more than 70 countries. Alongside the international business, the group has operations in key global markets, including India, China, Egypt, and West Africa. The UK however will remain central to Vitabiotics’ brand, innovation, and category leadership, Bain Capital said in a statement.
“Vitabiotics is a science-led brand platform with category leadership, strong healthcare professional credibility and meaningful presence across the UK, India, the Middle East, Africa and China,” said Pawan Singh, partner and India head at Bain Capital. “Our India team has deep experience partnering with healthcare and consumer businesses, and we look forward to supporting Vitabiotics’ next phase of growth.”
Bain won’t make immediate changes to Vitabiotics’ operations post completion of the deal, and the company will continue its focus on delivering for customers, partners and consumers, while investing in areas such as digital capabilities, ecommerce, international distribution, supply chain resilience and new product development, according to a statement.
