Catalent Making $1B Acquisition of Leading Gummies Manufacturer

Catalent Making $1B Acquisition of Leading Gummies Manufacturer

Catalent, Inc., the leading global provider of development sciences and manufacturing platforms for medicines, including biotherapeutics; cell and gene therapies; and consumer health products, announced that it has reached an agreement to acquire Bettera Holdings, LLC, a major manufacturer in the high-growth gummy, soft chew, and lozenge segments of the nutritional supplements market, for $1 billion, subject to customary adjustments. Both companies have operations in Indiana.

Currently a portfolio company of Highlander Partners, LP, Bettera will complement and accelerate the growth of Catalent’s global softgel and oral dose formulation and manufacturing business to provide consumer health innovators with unrivalled choice, formulation expertise, and high-quality, scalable manufacturing solutions to help bring new products to market.

Bettera is a market leader with broad and difficult-to-replicate expertise in successfully developing and producing consumer-preferred products for nutraceutical, functional, and botanical ingredients, and has four production facilities in the U.S. The acquisition will enable Catalent to expand its current consumer health technology platform with a wider range of technologies and ready-to-market product libraries, as well as a variety of packaging options to meet customers’ branding needs. Bettera will complement and leverage Catalent’s network of consumer health manufacturing sites across North and South America, Europe, and Japan, offering formulation development, delivery and supply solutions to the global consumer health and beauty markets. The combination will unlock significant commercial synergies as Catalent brings the unique offerings of each company to their respective high-quality customer bases.

“As the leading global innovator of softgel and oral technologies, Catalent has a strong, long-standing presence in the rapidly expanding consumer health and nutraceutical marketplace. This acquisition allows us to significantly accelerate the growth of our consumer health business and offer customers access to the substantial potential in gummies, soft chews, and lozenges, which are experiencing double-digit growth,” commented Dr. Aris Gennadios, President, Softgel and Oral Technologies, Catalent. “This acquisition is a key strategic move for Catalent’s Consumer Health business, where our leadership in manufacturing technologies and formulation can offer customers more product development opportunities and add manufacturing capacity in this dynamic and fast-growing segment.”

“Bettera was established with a vision to serve the needs of consumers who want to experience the benefits of nutritional supplements through more enjoyable and convenient dose forms,” stated Jeff L. Hull, President and CEO of Highlander Partners. “Catalent has long had a similar vision, combined with specialized expertise, a history of successful innovation, a wide range of offerings, and the resources to help Bettera continue to grow and meet customer and consumer needs. Together, Catalent Consumer Health and Bettera are well positioned to continue Bettera’s mission of serving consumers and participating in the long-term growth of the self-care market.”

The acquisition is expected to close before the end of 2021, and includes the transfer of substantially all of the approximately 500 employees, and product development, manufacturing, and packaging assets of Bettera Holdings, headquartered in Plano, Texas, including its production facilities in California, Indiana, New Jersey, and Virginia.

The acquisition is subject to customary terms and closing conditions. Catalent will pay the purchase price for this all-cash acquisition at closing using a combination of cash on hand, existing credit facilities and, depending on market conditions, new debt financing. The closing of the acquisition is not contingent on any financing activity. Catalent intends to file a Current Report on Form 8-K with the Securities and Exchange Commission with further details concerning the acquisition.

Centerview Partners LLC is serving as financial advisor to Catalent, and Fried, Frank, Harris, Shriver & Jacobson LLP is serving as Catalent’s legal counsel.

Click to share!
Category Business Buzz