The acquisition, brokered by US subsidiary BioGaia Biologics , includes Nutraceutics-owned, Everidis Health Sciences, the largely online exclusive distributor of BioGaia brands in the US.
The transaction is part of BioGaia’s long-term strategy to invest in direct-to-consumer digital sales and marketing programme to increase its profile in healthcare sectors and complements the brand’s 2021 expansion in Finland, the UK and Sweden.
Everidis CEO Jennifer Cherry, who will stay on at the company, said: “With BioGaia, we will have access to resources and capabilities to help catapult growth and achieve the goal of becoming the leader of the science-driven probiotic category.”
BioGaia will acquire the remaining 20% stake in Nutraceutics in 2027 or 2028 for an amount determined by the annual net revenue the preceding year.
The transaction values Nutraceutics at €12.3m (SEK126.9m) with BioGaia brands accounting for 87% of expected revenue in 2021.
The US is BioGaia’s largest probiotic market and presents a major opportunity for expansion in the long-term. Euromonitor figures from September 2021 estimate the current market value at €1.8bn (SEK18.6bn)
The 13-year partnership to date has enabled BioGaia to develop a burgeoning omni-channel business model in the region targeting healthcare professionals and end-consumers, with room for growth.
Nutraceutics and Everidis comprise a team of 23 who develop and supply natural health products for distribution in the USBioGaia CEO, Isabelle Ducellier said: “I have always been impressed by the professionalism of our US distributor Everidis.
Thanks to the unique understanding of the US probiotic market, Everidis has been able to set the standard for the whole BioGaia group in terms of omni-channel strategy.”
BioGaia has already implemented expansion plans in the UK and announced its intention to manage product distribution in the UK last November with a view to growing sales through its own e-commerce platform, as well as through selected pharmacies.
UK consumers have had limited access to products over the past eight years, but BioGaia recognises the market potential and plans to make its entire product range available in the region.
Ducellier commented: “The UK is a large and attractive market for BioGaia, with many consumers who have good knowledge of probiotics. With our clinically tested probiotic products – something we know that many consumers demand – we have a strong offering for the UK market.”
The company develops, markets, and sells probiotic products in more than 100 countries and has been involved in microbiome research for more than 30 years.
The efficacy of BioGaia probiotics, containing the lactic acid bacterium L.reuteri (Limosilactobacillus reuteri) for gut health is validated in 224 clinical studies and subsequently published in more than 200 scientific journals, according to information supplied by the company.
Products support gut, immune, pregnancy, oral and bone health, and include UK brands Protectis (baby drops and tablets, and tablets with vitamin D3 for adult gut health), and Gastrus tablets for probiotic gastrointestinal health.