Quebec City, Jan. 5 - Atrium Innovations Inc. is pleased to announce the acquisition of Nutri-Health Supplements, LLC, a fast-growing enterprise located in Cottonwood, Arizona, U.S. This acquisition is in line with Atrium's business development strategy since NHS markets, via multi-channel distribution, specialty niche products endorsed by health professionals.
NHS owns proprietary Multi-Probiotic(R) blends which include 16 powerful probiotic strains that are matrix encapsulated to survive stomach acid and deliver a high concentration of active cell cultures per capsule. During the last few years, NHS has experienced impressive growth and achieved approximately US$27 million in sales for 2008.
Probiotics is currently one of the fastest-growing specialized niches in the food supplement market and have become an important part of nutrition. Human body microbial populations have been altered by the use of substances that are designed to kill germs and disease. By introducing friendly microbes into natural gut flora, the resident micro flora will be strengthened.
The company's brand umbrella includes the Nutri-Health(R) brand which represents about 90% of NHS' total sales. This brand is sold through the direct-to-consumer (DTC) channel largely via a well established mail order program. Furthermore, NHS caters to the health food store and health care practitioner markets with a portfolio of high potential brands - Sedona Labs(R), Meta Foods(R), and Sedona Labs Pro(R).
Atrium has acquired NHS for a first consideration of US$23.9 million fully paid in cash at the closing of the transaction. Two additional earn-out payments have been structured based on NHS' 2009 and 2010 EBITDA growth.
"We are very pleased to acquire Nutri-Health Supplements, an innovative and successful enterprise that is distinguished by a true culture of performance. Nutri-Health has built a loyal and rapidly growing clientele over the years by developing and marketing high quality, health professional-endorsed, specialized products. Buying Nutri-Health marks our first acquisition into the DTC segment with a company aligned with our values and objectives. NHS allows us to acquire complementary expertise in this market segment in which we had a limited business presence until now. This opens the door to promising, synergistic development opportunities within Atrium," said Mr. Pierre Fitzgibbon, President and Chief Executive Officer of Atrium.