Orkla Health acquires Healthspan
Orkla Health has acquired 100 per cent of the shares in Healthspan Group Limited, a leading supplier of dietary supplements in the British market.
Healthspan was established in 1996 and has since built up a strong brand and a broad range of dietary supplements and skin care products. A total of 92 per cent of the company’s sales are made directly to consumers and the company has around half a million active customers.
“This acquisition is a strategically important purchase for us along several dimensions. It supports our ambitions of establishing a stronger position in consumer health and it strengthens our position 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. Both the health category and direct-to-consumer sales channel are growing,” says Orkla President and CEO Jaan Ivar Semlitsch.
Healthspan has a strong portfolio of over 400 different products, most of which are sold under the Healthspan brand. The company has a network of specialists and experts with whom it collaborates, allowing market trends to be identified quickly, and an efficient organisational structure to rapidly bring new products to the market.
“Healthspan will be operated as a stand-alone company under Orkla Health. At the same time, the company will 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,” says Hege Holter Brekke, Orkla EVP and CEO of the Orkla Care business area, of which Orkla Health is a part.
The current management team will continue to operate the business following the acquisition. Healthspan has 170 employees, the business is based in Guernsey and has product distributed from centres in Great Britain, Ireland and New Zealand.
Orkla Health is purchasing Healthspan from the estate of the founder Derek Stephen Coates who passed away in 2020. The parties have agreed on a purchase price of GBP 65 million on a cash and debt free basis. In addition, the agreement includes the possibility of up to GBP 20 million of additional purchase price depending on the company’s results (EBITDA) in the next two financial years.
In 2021, Healthspan had a turnover of GBP 50.0 million and normalised profit of GBP 4.7 million (EBITDA). Most of the turnover comes from Great Britain.
The company will be consolidated into Orkla’s financial statements as of 1 March 2022.
About Orkla Health
Orkla Health is one of the Nordic region’s leading branded goods suppliers of dietary supplements with products in segments such as cod liver oil, vitamins, weight control and sport nutrition. The best known brands in its portfolio are Möller’s Tran, Nutrilett, Maxim, Livol, Collett, VitaePro and Sana-Sol. Orkla Health is part of the Orkla Care business area. Consumer Health is one of Orkla’s three priority growth areas and the goal is 50 per cent growth in sales in 2025.
About Orkla
Orkla is a leading supplier of branded consumer goods and concept solutions to the consumer, out of home and bakery markets in the Nordics, the Baltics and selected markets in Central Europe and India. Orkla is listed on the Oslo Stock Exchange and has its headquarters in Oslo, Norway. In 2021, the group had a turnover of NOK 50.4 billion, and it has around 21,500 employees.
Orkla ASA
23 February 2022
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SVP Communications
Dag Olav Stokken
Tlf.: +47 916 65 078
dag.olav.stokken@orkla.no
SVP Investor Relations
Kari Lindtvedt
Tlf.: +47 950 75 114
kari.lindtvedt@orkla.no
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
This stock exchange announcement was published by Kjetil Sørum, Investor Relations Manager at Orkla ASA on 23 February 2022 at 23:57 CEST.