• NCN News for May 4, 2011

Castanea Partners Invests In Fitness Anywhere
Castanea Partners (Newton, Mass.) has purchased a minority interest in Fitness Anywhere LLC (San Francisco, Calif.), a developer and marketer of suspension training equipment and content under the TRX brand. Terms were not disclosed. Randal Hetrick, a former U.S. Navy SEAL, founded Fitness Anywhere in 2004 to commercialize the training technique he invented in response to demand by Navy SEALs to maintain high levels of strength and conditioning without access to gyms or safe outdoor space. The company has “tremendous potential to broaden consumer awareness and expand their content and training offerings,” said Steve Berg, a partner for Castanea. “There is meaningful opportunity to accelerate customer adoption with programming and digital content, to broaden the product line, and to expand internationally.” Fitness Anywhere was represented by Partnership Capital Growth, a boutique investment bank that focuses exclusively on the healthy, active and sustainable living marketplace. Castanea is an NCN Cornerstone Investor.

KKR to Buy Capsugel
Kohlberg Kravis Roberts & Co. has agreed to acquire Pfizer Inc.'s Capsugel business for $2.38 billion in cash. Aiming to focus on the higher profit business of developing new pharmaceuticals, Pfizer (New York, N.Y.) said last fall it was reviewing options for Capsugel (Peapack, N.J.), a leading capsule manufacturer to the dietary supplement and pharmaceutical industries. Capsugel, which was acquired by Pfizer in 2000, generated about $750 million in revenue last year and has manufacturing facilities in the U.S., Europe and Asia. It will maintain a corporate presence in the United States, and Pfizer colleagues dedicated to this business will be transferred to Capsugel.

New Zealand Ingredient Developer Attracts Regional Capital
Central Capital Investments (Waikato, N.Z.) has backed Quantec Limited (Hamilton, N.Z.) with a $250,000 cash injection. The fund’s investment has been matched by the government’s New Zealand Venture Investment Fund for a total outlay of $500,000. Quantec specializes in discovering and commercializing high value bioactive ingredients from natural products, the first being a novel milk derived fraction that has proven anti-inflammatory, antioxidant and antimicrobial properties, according to Quantec’s co-founder and managing director Dr. Rod Claycomb. “The first human health products incorporating our ingredient, known as IDP, should be on the shelves in both the U.S. and China by mid-year,” he said. Funds will be used to grow global sales of IDP and test Quantec’s formulation as a mastitis treatment in cows. “The really big win for Quantec will come if we can crack the animal health market,” said Quantec co-founder and senior scientist Dr. Judy Bragger. Quantec was a presenting company at NCN’s 2009 Investor Meeting at SupplySide West in Las Vegas.
 
Evolva Holding to Acquire Stevia R&D Partner
Publicy traded Evolva Holding SA (Reinach, Switzerland) plans to acquire its R&D partner Abunda Nutrition Inc. (San Francisco). The two companies have collaborated on Abunda’s nutritional ingredients since 2009, using Evolva’s proprietary technology to make the key components of the natural sweetener Stevia via fermentation in yeast. This method yields a highly purified form of the sweetener compared to traditional methods of refining extracts from cultivated Stevia leaves, according to the company. “We intend to commercialize Stevia following our established business-to-business model and expect to actively enter collaborations with companies regarding manufacturing scale-up and commercialization,” said Evolva CEO Neil Goldsmith. Evolva will also acquire development-stage compounds related cardiovascular health.

French Group Acquires Provident Clinical Research of Chicago
The bio-industrial group Mérieux NutriSciences Corporation (Lyon, France) has acquired Provident Clinical Research & Consulting, Inc. (Chicago), expanding its capabilities in North America.  Provident was founded in 2004 by Kevin C. Maki, PhD and employs over 40 people; it will be integrated into Mérieux NutriSciences' Biofortis Business Unit. Provident provides clinical research and consulting services to the food and biopharmaceutical industries and specializes in designing and conducting clinical nutrition trials aimed at managing risk factors associated with metabolic and cardiovascular diseases. With annual sales reported at more than $350 million, Mérieux NutriSciences is present in 16 countries and has a network of more than 60 accredited laboratories. It is part of Institut Mérieux of France.

Pharma Company Strengthens Position in South African Supplement Industry
Adcock Ingram, a major supplier of pharmaceuticals and hospital products in South Africa, has announced the purchase of NutriLida Healthcare (Johannesburg) with an eye to becoming a leading player in the domestic market for dietary supplements. Adcock Ingram already has a presence in the tonics market, and NutriLida will increase its visibility in the growing self-medication segment with a portfolio featuring niche brands like ProbiFlora, GynaGuard, ViralGuard and ArthroGuard. The transaction is subject to approval from the Competition Commission of South Africa. Adcock Ingram has a market cap of about $1.34 billion and claims a 10% share of the private pharmaceutical industry in South Africa.

Fresh Apple Cider Company Zeigler Acquired
LiDestri Food & Beverage (Fairport, N.Y.) has acquired M.H. Zeiger's & Sons LCC (Lansdale, Pa.). Zeigler's is a large producer of fresh apple cider, producing and bottling a variety of fresh and shelf-stable juices, lemonades, ice teas and other beverages under the Zeigler's brand and for both private label and contract manufacturing customers.

Dried Fruit Packer Mariani Invests In Cranberry Business
Century old Mariani Packing Company (Vacaville, Calif.) said it has purchased family owned Urban Processing, LLC (Wisconsin Rapids, Wis.), a cranberry processing facility, making it the only vertically integrated company in the three largest segments of the dried fruit industry: raisins, prunes and cranberries. “There could be no better time to make this investment,” said President George Sousa Jr. “There has been tremendous growth of dried cranberries in the last 10 years, in fact they are now the second segment to raisins in total category sales.” According to Mariani, it is the largest independent dried fruit packer in the United States and Wisconsin is the largest cranberry producing state, accounting for over 400 million out of a nearly 700 million pound annual crop.

Two NPC Brands United in U.K.
First Natural Ltd. (Hove, U.K.), owner of the aromatherapy brand Tisserand, has acquired Barefoot Botanicals, a firm best known for its natural skincare products for dry irritated skin and premature ageing. First Natural acquired Tisserand in 2007. Both Tisserand and Barefoot Botanicals are well-established British brands in the competitive natural personal care (NPC) segment.

Nestlé Expands Reach in China
Nestlé SA (Vevey, Switzerland) is taking a 60% stake in Yinlu Foods Group of China for an undisclosed amount. Yinlu is a co-manufacturer for Nescafe instant coffee in China; its ready-to-drink peanut milk and canned rice porridge are popular with Chinese consumers, contributing to company sales of around $840 million in 2010. The transaction is subject to regulatory approval in China. Nestlé reported sales of $3.13 billion last year in China, where it already has 23 factories and 14,000 employees.

Tesco Buys Blinkbox
British supermarket retailed Tesco has bought an 80% stake in movie-streaming site Blinkbox from Eden Ventures and Nordic Venture Partners. It plans to use the video-on-demand service to combine the purchase of physical products with the use of online services, according to BBC news online. Tesco U.K.’s Chief Executive Richard Brasher commented that the service will allow Tesco to “link physical purchase of a product to the building of digital collections in a new and seamless way." The site, which launched in April 2008, gives members access to over 9,000 films and TV series via their PC, Mac, games console or other internet-enabled devices.  Customers can either pay for premium feature titles, or view ad-supported content for free. Around two million Britons use the service each month.

Tate & Lyle Inks 5-year Deal with BioVittoria for Sweetener
Tate & Lyle has entered into a five-year strategic partnership agreement with BioVittoria Ltd. for the exclusive global marketing and distribution rights for BioVittoria’s monk fruit. Tate & Lyle will be marketing the products in the U.S. under the PUREFRUIT brand name. The only fruit-based calorie-free sweetening ingredient available today, natural monk fruit extract offers a way to reduce sugar and calories in foods and beverages. The agreement expands Tate & Lyle’s portfolio of wellness ingredients and strategy as a global provider of specialty food ingredients. Tate & Lyle is an NCN Cornerstone Investor and BioVittoria was a presenting company at NCN VI in April 2010.