Retailer deals may boost NeutraHealth acquisition drive
distribution deals for its TravelGuard product line that it is
hoped will yield returns to enable new acquisitions in 2007.
The UK-based acquisitions company said in October that trading conditions had been tough over the summer months, but it remained upbeat about its earning potential on the grounds of new initiatives.
Those initiatives seem to have borne fruit, with agreements reached for the sale of TravelGuard products for travellers in Boot The Chemist, Waitrose, Harrods, Selfridges, Holland & Barrett and The Nutri Centre.
Between them these retailers make up more than half of the UK vitamin and mineral supplement market, according to the company. More negotiations are said to be underway with other retailers.
"The prospects look strong as we move into 2007 and continue our strategy of acquiring good businesses with growth opportunities," said chief executive Michael Toxvaerd.
NutraHealth's first acquisition, of probiotics player Biocare for £16.1 million (€23.2m), is described as a cornerstone of the model; this was followed in February with a second, bolt-on acquisition of Nutrigold for £0.5m (€0.73m), which is seen as an opportunity to realise synergies by bringing together order fulfilment and administrative functions.
Chairman Mike Gatto told NutraIngredients.com in October that NeutraHealth has yet to finish building its base of companies from which it will seek to grow organically, and expects to make two or three more acquisitions in the next couple of years.