Dietary supplements group Healthspan has been acquired by Norwegian conglomerate Orkla for £65m.
Founded in 1996 by Derek Coates, Healthspan has built a brand with a broad range of products across the vitamins, mineral and supplements (VMS), sports nutrition, pet health and skincare markets.
Just more than 90% of its £50m turnover is generated directly from consumers, with an active customer base of about 500,000.
The deal supports Orkla’s ambitions to strengthen its position in consumer health and online.
“Healthspan has a broad portfolio of dietary supplements and has established a strong business model with direct sales to consumers in the British market,” said Orkla president and CEO Jaan Ivar Semlitsch.
“Both the health category and direct-to-consumer sales channel are growing.”
Listed on the Oslo Stock Exchange, Orkla supplies branded consumer goods to the grocery, out-of-home, specialised retail, pharmacy and bakery sectors in the Nordics, the Baltics and selected markets in Central Europe and India. It employs about 21,500 staff and generated revenues of 50.4bn kroner (£4.2bn) in 2021.
Healthspan, which employs 170 staff and is based in Guernsey, will be operated as a standalone company under Orkla Health, one of the Nordic region’s leading branded goods suppliers of dietary supplements.
The current management team will continue to operate the business following the acquisition.
Orkla Care CEO Hege Holter Brekke said Healthspan would be able to tap into Orkla’s strength and expertise to drive further growth.
“Through the acquisition of Healthspan, we are reinforcing our position in consumer health and establishing a new home market for Orkla Care,” she said.
Orkla Health is purchasing Healthspan from the estate of the founder Derek Coates, who died in 2020. On top of the £65m purchase price, the agreement includes the possibility of up to a further £20m depending on the EBITDA levels in the next two financial years.
PwC acted as lead advisor to Healthspan, while Houlihan Lokey advised Orkla.
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