Nestlé stock ends in red: Nestlé buys US vitamin manufacturer Bountiful | 04/30/21

Friday said the deal would be completed in the second half of the year. In the last fiscal year 2020/21, Bountiful had sales of $ 1.87 billion, and its EBITDA margin was 18.3%. This margin is likely to be negatively affected by one-time integration costs and will also have a slightly mitigating effect on Nestlé’s revised operating margin in the current year.

The primary brands to be acquired include Nature’s Bounty, Solgar, Osteo Bi-Flex, and Puritan’s Pride. These brands will be incorporated into Nestlé Health Science and create a leading global supplier of vitamins, minerals and supplements.

She wanted shares of Nestlé after the acquisition of the US vitamin maker Bountiful

Nestlé shares rose intermittently on Friday. The foodstuff company confirmed its acquisition of US-based vitamin maker Bountiful. The buyout was generally received by analysts. At the close of trading, Nestle’s share fell 0.26 percent to 108.88 francs.

As Nestle announced, the $ 5.75 billion acquisition will be completed in the second half of the year. In the last fiscal year 2020/21, Bountiful had sales of $ 1.87 billion, with an EBITDA margin of 18.3%.

This will make Nestlé the leading global supplier of vitamins, minerals and supplements in a highly fragmented market, according to Vontobel Bank. According to the analyst in charge, the 10 leading companies in the field did not even have 20 percent of the market. Bountiful has developed very well in recent years and has received another boost from the Coronavirus pandemic.

At the same time, ZKB considers the acquisition to be “very good” in line with Nestlé’s strategy to further expand the globally growing “extremely attractive” specialty foods category. The responsible ZKB expert considers the acquisition price to be fair, even if the Bountiful EBITDA margin is slightly less than Nestlé’s.

Baader Helvea assumes that the deal will accelerate the food giant’s sales growth in the short to medium term. However, the responsible expert also points out that there are differing views about nutritional supplements or about how essential they are for a healthy and sustainable diet and whether these products have a measurable health effect.

D m / outside

Fifi (AWP)