More evidence that while many economic sectors range between cool and frozen, the nutritional supplement industry remains warm to hot:
Quebec City-based Atrium Innovations Inc. (TSX: ATB) announced on Sept. 21 the purchase of Garden of Life Inc. for $35 million, almost all of it cash. Atrium makes and markets health and nutrition products in 35 countries. Based in West Palm Beach, Fla., Garden of Life sells products in almost 12,000 U.S. health food and specialty stores and has annual revenues of about $52 million.
Vitacost.com (NASDAQ: VITC) in Boca Raton, Fla., went public with 11 million shares at $12 per share on Sept. 24. That raised $32 million. The retailer of supplements and personal products sold 4.4 million of its shares and stockholders sold just under 6.6 million shares. The stock has since fallen to a close of $9.70 per share on Oct. 2 and is trading about 407,000 shares per day.
Why are nutrition companies getting Wall Street’s attention? While people have sacrificed Caribbean cruises and trips to Disney World, they have not relinquished their vitamin pills. They continue to invest in preventative health through purchases of supplements. The strength of consumer demand has shown itself in sales figures. Bankers noticed, so expect more deals to get done.