New growth formula

5 December 2017 By Carol Ryan

Buying the diet-supplement group for $2.3 billion gives the KitKat maker a tonic for sluggish sales. An entrepreneurial management team will stick around to run it. A 16.4 times EBITDA multiple brings lively returns to seller Permira, but without Nestlé overdoing the dosage.

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Nestlé has agreed to buy Atrium Innovations from a group of investors led by Permira Funds for $2.3 billion, the Swiss consumer-goods maker announced on Dec. 5.

Quebec-based Atrium, which makes nutritional health products such as probiotics and meal replacements, is expected to generate sales of almost $700 million in 2017.

Atrium will become part of Nestlé’s Health Science division but continue to be managed by its existing management team. Thesale is expected to close in the first quarter of 2018.

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