THE NEW HEALTHY WORLD. Nestles Health Kick. Nestlé SA agreed to buy Atrium Innovations Inc., a Canadian vitamin maker, for $2.3 billion, including the assumption of debt – by Todd Horwitz, Bubba Trading.

 

Todd’s Daily Video Commentary can be found here: https://tinyurl.com/y8qmd5wt

THE NEW HEALTHY WORLD
Nestle Health Kick

The world is becoming more health conscience every day, even the companies known for junk food or foods with high sugar and fat content are now trying to cash in on the health craze.

Nestlé SA agreed to buy Atrium Innovations Inc., a Canadian vitamin maker, for $2.3 billion, including the assumption of debt—expanding its range of consumer-health offerings as sales slow for packaged-food staples such as TV dinners and chocolate-powdered drinks.

Atrium owns the Garden of Life and Pure Encapsulations supplement brands and is owned by a consortium of investors led by private-equity firm Permira. It will become part of Nestlé’s health-sciences arm, which makes products such as meal-replacement drinks and nutritional therapies for conditions such as diabetes and dysphagia.

About 80 percent of Atrium’s sales come from the United States, meaning there is still room to buy businesses elsewhere, such as the vitamins unit being sold by Germany’s Merck, which has a large presence in emerging markets and is also being looked at by Nestle.

“We continue to look for opportunities in things that make sense in very disciplined fashion,” said Greg Behar, head of Nestle Health Science, the division that will house Atrium Innovations. Nestle Health Science already sells nutritional products for people with specific medical conditions and has been at the forefront of Nestle’s ambition to become a “nutrition, health and wellness” company as packaged food sales slow, amid changing tastes.

Atrium has about 1,400 workers and its 2017 sales are forecast to reach almost $700 million. Its largest brand is the Garden of Life line of supplements. Greg Behar said Atrium’s brands will help supplement Nestle’s offerings in the fast-growing market for natural and organic supplements

Keep those stops tight
Todd “Bubba” Horwitz

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Todd Horwitz – Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.