Nellson Nutraceutical, a portfolio company of Kohlberg & Company, has entered into an agreement to acquire Le Groupe Multibar, a manufacturer of nutritional and snack bars. The transaction is expected to close in approximately 30-60 days.
“Since our acquisition of Nellson in August 2013, we have been focused on identifying acquisitions as a means to grow and expand our capabilities, product offering and customer base. Multibar represents a key step toward that end,” said Seth H. Hollander, Partner of Kohlberg.
Le Groupe Multibar is a manufacturer of nutritional and snack bars that are used by a range of customers. Multibar offers several varieties of Nutrition Food Bars to people seeking weight loss or that are in active lifestyles or to be used as a supplement for any intense physical training program. Le Groupe Multibar was founded in 1987 and is based in Montreal in a state-of-the art facility that consists of over 250,000 square feet of production and finished goods warehouse space (www.multibar.com).
Nellson Nutraceutical is a formulator of branded and private-label nutritional bar and functional powder products. The company develops and manufactures its products in a variety of ingredient formulations and product formats for its customer base of consumer packaged goods companies and retailers across the wellness, sports nutrition, weight control, athletic/energy, and medical nutrition end-markets. The company was founded in 1962 and is based in Irwindale, CA (www.nellsonllc.com).
The acquisition of Multibar increases Nellson’s production capabilities, expands product lines and channels and diversifies its customer mix. “We are excited about merging with Nellson, and capitalizing on the respective strengths of the two companies in order to benefit our current and prospective customers,” said Scott Greenwood, CEO of Nellson, who will retain his title in the combined entity.
The combined company will have four manufacturing and R&D facilities offering greater capabilities to customers both in the US and Canada, as well as internationally.
Kohlberg & Company invests in companies in the industrial manufacturing; consumer products; business services; healthcare services; and financial services sectors. The firm concentrates on transactions with EBITDAs between $20 million and $100 million where it can invest between $50 million and $200 million of equity. Kohlberg & Company is currently investing its seventh private equity fund, Kohlberg Investors VII. The firm was founded in 1987 and is based in Mt. Kisco, NY (www.kohlberg.com).
GE Capital and Metropolitan Life Insurance Company have provided Nellson with fully committed credit facilities sufficient to close the transaction. Houlihan Lokey acted as financial advisor to Multibar.
2014 PEPD • Private Equity’s Leading News Magazine • 11-25-14