Nestle Health Science to acquire GO Healthy and parent firm, hails brand’s ‘simplified yet effective’ vitamin regimen
This will be the global nutrition giant’s first acquisition of a company based in Asia-Pacific.
Known as The Better Health Company (TBHC), it is the parent company of dietary supplement brand GO Healthy, manuka honey brand Egmont, and New Zealand Health Manufacturing businesses.
Nestle Health Science will be buying over the firm from China-based private equity investor CDH Investments and the firm’s founding shareholders.
CDH Investments invested in the firm in 2016 and has been intending to sell it since the end of 2020.
“We’re pleased to have found a very strong partner in Nestle Health Science to take the business forward.
“CDH invested in TBHC more than five years ago. That’s a very typical investment period for a private equity investor.
“Having achieved the objectives that were set at the time that CDH invested, it’s now a natural time to transition the business to a new owner,” Greg Driscoll, co-founder, group chairman of TBHC told NutraIngredients-Asia.
In year 2019, it was reported that CDH wanted GO Healthy’s steady growth to “pan out a bit more” from the then revenue run rate of NZD 150m (USD 97m), before considering a sale, said CDH managing director Thomas Lanyi.
“The TBHC team have built a fantastic business that is authentic, innovative and truly differentiated…I am confident that Nestlé Health Science will be an ideal partner to take the business into the next phase of growth,” said Lanyi on Nestle’s acquisition.
Terms of the transaction have not been disclosed and it is expected to close in Q4 this year.
Fits into active lifestyle, nutrition portfolio
Nestle Health Science, on the other hand, said that the acquisition was a strategic fit with its global portfolio of active lifestyle and health and nutrition brands.
“GO Healthy and Egmont are trusted brands with a track record of strong growth which complement our global portfolio of active lifestyle and health & wellness nutrition brands very well.
“This is our first acquisition ever of a company based in the Asia, Oceania, and Africa region and we are excited about the opportunities that this offers us,” said Nestle Health Science’s head of Oceania, Asia, Middle East & Africa region, Paul Bruhn.
The GO Healthy products are also attractive for its convenient and effective regimen, Margaret Stuart, director of Corporate Affairs and Sustainability at Nestlé Oceania told us.
“Go Healthy has a unique position in the market as most of its products are in a convenient ‘once-a-day’ format, using a comparatively higher therapeutic dose.
“This appeals to consumers who may like a simplified, yet effective, VMHS (vitamins, minerals, and health supplements) regime,” she said.
To drive faster NPD
The acquisition will help TBHC’s and Nestle's brands to accelerate new product development.
“We also see the opportunity to accelerate growth in the region through the manufacturing facility in Auckland which will enable us to bring new products to local markets faster,” said Bruhn.
The operates production and manufacturing facilities in Auckland and Taranaki – a city in New Plymouth.
“We see opportunities to leverage The Better Health Company’s manufacturing facility and capabilities to accelerate product innovation, development and launches, both for The Better Health Company’s brands as well as for Nestle Health Science’s,” Stuart added.
Other brands that Nestle Health Science currently sell in New Zealand are include Vital Proteins and specialised nutrition products Optifast, Sustagen, and Alfamino.
Driving regional expansion
The acquisition will see Nestle Health Science help introduce the GO Healthy brand into more markets.
Aside from New Zealand, it now has a growing presence in Australia, South Korea, China, Singapore and Vietnam.
On the other hand, TBHC’s 270 employees are based in Auckland, Wellington, Taranaki, Melbourne, and Singapore. No job losses are expected from TBHC from the acquisition, the firm said.