Oslo-headquartered Orkla Health has acquired 100% of the shares of dietary supplements supplier Healthspan Group Limited for £65 million on a cash and debt-free basis.
“This acquisition is a strategically important purchase for us along several dimensions,” explains Orkla president and CEO, Jaan Ivar Semlitsch. “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.”
Established in 1996, the Guernsey-based brand has a portfolio of over 400 supplements and skincare products, most of which are sold under its own brand, with 92% of sales made directly to consumers. The company has 170 employees and distribution centres in Britain, Ireland and New Zealand.
This is an exciting opportunity for Healthspan … to tap into Orkla’s expertise and strength to drive further growth and expansion
Commenting on the purchase, Healthspan CEO, Martin Talbot says: “This is an exciting opportunity for Healthspan, we will continue to operate as a standalone business from Guernsey but with the opportunity to tap into Orkla’s expertise and strength to drive further growth and expansion. Healthspan will continue to operate the business with the same management team and employees in place following the acquisition.”
Orkla Health acquired Healthspan from the estate of the founder Derek Stephen Coates who passed away in 2020. The agreement includes the possibility of up to £20 million of additional purchase price depending on the company’s results in the next two financial years. In 2021, Healthspan had a turnover of £50 million and normalized profit of £4.7 million (EBITDA), most of which comes from Britain.