Recent transactions in the nutrition and health & wellness industry

 

Nutrisystem to be acquired by Tivity Health

Tivity Health Inc. (Nashville, Tennessee), a provider of health and fitness programs, is buying Nutrisystem Inc. (Fort Washington, Pennsylvania) for $1.3 billion in cash and stock. Tivity Health generated revenue of $453.3 million for the nine months ending Sept. 30, from programs including SilverSneakers, Prime Fitness, WholeHealth Living and flip50. Nutrisystem owns Nutrisystem weight loss products and services, the South Beach Diet and DNA BodyBlueprint, generating revenue of $561.5 million for the nine-month period. For both companies for the 12 months ending Sept. 30, pro forma revenue would have been approximately $1.3 billion and net income approximately $135 million. Tivity expects to use Nutrisystem’s diet plans to attract partnerships with large health insurers looking to reduce claim costs from obesity-related health conditions, according to Reuters.

Ingredion invests $140 million to grow plant-based proteins

Global ingredients company Ingredion (Westchester, Illinois) is making $140 million worth of strategic investments to expand its plant-based protein portfolio. Two of Ingredion’s North American manufacturing facilities will produce pea-protein isolates and pulse-based flours and concentrates in 2019. Ingredion also announced a joint venture with Verdient Foods Inc. (Vanscoy, Saskatchewan, Canada, and) to make pulse-based ingredients for human food applications. The new ingredients will complement Ingredion’s Vitessence Pulse protein isolate line and will include isolates primarily for the nutrition and health and wellness categories. The global market for non-soy, gluten-free plant-based proteins is projected to be $1.5 billion by 2022, according to Ingredion.

Bowery raises $90 million for vertical farming

Vertical indoor farming company Bowery (New York, New York) announced $90 million in new funding led by GV (formerly Google Ventures) with participation from Temasek and Almanac Ventures. Series A investors General Catalyst and GGV Capital and seed investors also participated. Bowery produces packaged salad leaves and herbs using no pesticides, non-GMO seeds and sophisticated analytics to guide inputs. The company began operating in February 2017 and plans to use the new fundingto build out operations, expand products and partnerships, and grow its team.

Lakeview Farms boosts fresh dips and spreads business with two acquisitions

Lakeview Farms LLC (Delphos, Ohio) announced two acquisitions in December. Tribe Mediterranean (Taunton, Massachusetts), maker of natural prepared hummus, gives Lakeview entry into the $800 million hummus category. Tribe hummus contains no GMO ingredients, artificial preservatives, hydrogenated oils or high-fructose corn syrup. Lakeview also acquired Simply Fresh Foods (Buena Park, California), maker of natural fresh refrigerated foods, including Rojo’s salsas and dips, from Ancor Capital Partners. Founded in 1988, Lakeview Farms makes refrigerated desserts, dips, seafood salads and spreads. The company has been owned by Sequel Holdings LP since 2015 and employs approximately 500 people. 

ROAR Organic announces first institutional investment

ROAR Organic (New York, New York), maker of vegan, low-calorie, low-sugar electrolyte-infused beverages, announced a $5.6 million funding led by AccelFoods. Together, ROAR and AccelFoods aim to expand ROAR's team, increase brand awareness, and boost distribution. Based on the notion of “clean hydration,” ROAR’s organic beverages have a coconut-water base and are free of artificial sweeteners and preservatives. Founded in 2016, the company said it has grown 300 percent in 2018.

$5 million equity raise readies Love Good Fats bars for U.S. launch

The Good Fat Co. Ltd. (Toronto, Canada) has closed $5 million in funding to support its launch in the United States. Designed to complement a keto lifestyle, the company’s Love Good Fats snack bars have low sugar, moderate protein, and 14g of fats like nut butter, coconut oil, and cacao butter. Available in more than 2,500 doors across Canada, they are the No. 1 and No. 2 best-selling SKUs in many stores, according to the company. Love Good Fats bars will launch in all U.S. Whole Foods Market stores in January. This new round brings the company’s total equity raise to $9.4 million.

Global Bakeries acquired by private equity firm

Surge Private Equity has acquired Global Bakeries Inc. (Pacoima, California), a 40-year-old specialty baked goods manufacturer specializing in non-GMO bread products such as pita bread, bagels and croissants. “We are eager to assist in taking Global Bakeries to the next level by continuing to expand our offerings into the latest trends, such as organic and gluten free," said Tom Beauchamp, partner at Surge Private Equity. Global Bakeries is described as one of the “largest specialty bakeries privately owned in the western half of United States.” The company also received investment from The Firmament Group, which provided debt financing and a portion of equity financing.

HKW acquires Fresh Direct Produce

Hammond, Kennedy, Whitney & Company (HKW) has acquired Fresh Direct Produce LLC (Vancouver, British Columbia, Canada), a distributor of fresh, ethnic, tropical, organic and specialty produce. The business has grown from 11 employees and two trucks in 2003 to more than 220 employees, 26 trucks and three distribution facilities serving the Western Canadian market. “Fresh Direct Produce is a great addition to HKW’s health & wellness business sector,” said John Carsello, partner at HKW. In August 2018, HKW acquired Indigo Wild, the maker of Zum Bar goat’s milk soap and other natural personal and household products.

Science in Sport completes PhD Nutrition acquisition

Sports nutrition company Science in Sport (London, United Kingdom) completed the acquisition of premium protein brand PhD Nutrition (Hull, United Kingdom), a deal that "immediately doubled" the size of the company. “This is a transformational deal for our business. It accelerates our ambition to become a global leader in premium performance nutrition,” said SiS chief executive Stephen Moon. SiS is an endurance nutrition brand that makes bars, gels, and tablets for professional athletes and sports enthusiasts.

Former Whole Foods co-CEO to invest in Cece’s Veggie

Cece’s Veggie Co. (Austin, Texas) announced that Walter Robb, former Whole Foods Market co-CEO and board member, is investing in Cece’s. The company’s mission is to make it easy and fun to eat more vegetables; products include organic spiralized vegetable noodles, riced vegetables and meal kits. “As a category-creator, Cece’s is building a brand in the produce department for customers looking for premium, veggie-centered meal options,” said Robb. Cece’s launched in 2015 and, as of November, had gained national distribution in all Whole Foods Market stores.

Lesaffre strengthens presence in nutritional ingredients

As part of its ongoing expansion strategy in nutrition and health, Lesaffre (Lille, France), a yeast and fermentation company, has fully acquired Gnosis (Desio, Italy), a specialist in fermentation ingredients for the pharmaceutical, nutraceutical, cosmetic and veterinary industries. The acquisition is expected to strengthen Lesaffre’s presence in nutritional ingredients and human health. Founded in 1989, Gnosis specializes in microbial fermentation and has registered more than 40 patents globally. Gnosis has two GMP production sites in Europe and two commercial offices in the United States and China, Lesaffre said in a news release.

Copper Cow closes $2 million for coffee kits

Copper Cow closed a $2 million round of funding led by Silverton Partners, with AmplifyHer Ventures, CRCM Ventures, Montage Venture, and Social Starts participating. The maker of Vietnamese style coffee kits markets single-use “pour over” filters filled with sustainably sourced coffee and optional condensed milk. Filters are biodegradable and compostable.

DNA Brands acquires NEO Superwater

DNA Brands Inc. (Fort Lauderdale, Florida) announced the acquisition of Betta4U Brands, DBA NEO Superwater (San Francisco, California), a brand of high alkaline bottled water with electrolytes and antioxidants. Since its inception in late 2011, NEO Superwater has grown revenue to about $1 million per year for the past four years, netting about $300,000 to $400,000 profit annually, according to a DNA Brands news release. Betta4U founder Bernard Rubin will be appointed to the DNA Brands board, in addition to serving as president in charge of beverage related matters. 

 

Disclaimer: NCN does not warrant the accuracy, reliability, or timeliness of any NCN news item. Before relying on any NCN News item the information should be independently verified.

 

Nutrition Capital Network is accepting applications for the 2019 NCN Investor Meetings from companies interested in presenting business plans to an audience of qualified investors. Interested investors are also invited to register to attend the events.