Bain Capital Acquires Vitabiotics in Nearly £900 Million Deal as Tej Lalvani Exits Family Vitamin Empire
Bain Capital, the private equity firm, said it would buy Vitabiotics, one of the UK's largest vitamin and nutritional supplement companies, in a major deal that will usher in a new era for the family-owned company founded more than five decades ago. The companies have not disclosed final financial terms, but the deal values Vitabiotics at about £900 million, the companies said.
The deal will combine Bain Capital's global healthcare and consumer investment expertise with Vitabiotics' well-established portfolio of vitamin, mineral and supplement brands. The deal includes Vitabiotics' UK operations and the wider VB Group including Meyer Organics in India and operations in Africa, expanding Bain's footprint in the fast-growing global wellness market.
Vitabiotics is one of the UK's leading health and nutrition companies and its products are available in more than 70 countries. Its key brands are Wellman, Wellwoman, Pregnacare, Perfectil and Osteocare, covering a wide range of consumer health needs from women's health to pre-natal nutrition and general vitamin supplementation.
The deal is a big boost for former Dragons' Den investor and chief executive Tej Lalvani, who was instrumental in shaping the family business into a global consumer healthcare brand. Lalvani took over the group in 2015, after joining the company founded by his father, Professor Kartar Lalvani. Global revenues had increased from about £101 million to £195.6 million over the period of his tenure as demand for science-based nutrition products and wellness solutions grew.
Bain Capital said the UK would remain at the heart of Vitabiotics' future operations, with plans to invest in digital capabilities, e-commerce, international distribution, supply chain resilience and new product development. Its Asia private equity team will lead the investment, drawing on regional expertise to expand into markets such as India, the Middle East and China, building on the entry into India through Meyer Organics.
Private equity firms are increasingly targeting healthcare and consumer wellness companies with their recurring revenue models, strong customer loyalty and opportunity for international expansion, which makes vitamins and supplements particularly attractive as items usually bought on a repeat basis with consistent demand.
Bain Capital's purchase is expected to help Vitabiotics grow in its next phase while keeping its current operating model in place. The private equity firm said there would be no immediate changes to daily operations and the company would continue to focus on customers, partners and product innovation.
On completion of the deal, Professor Kartar Lalvani will become chairman emeritus in an honorary capacity in recognition of his role in building the business over more than 50 years. The deal now moves to the required regulatory approval process before it can be completed.
