Enterprise Investors to sell Scitec Nutrition to Ascendis Health
Polish Enterprise Fund VII (PEF VII), a private equity fund managed by Enterprise Investors, together with its minority co-investors (including Morgan Stanley Alternative Investment Partners), have signed an agreement to sell a 100% stake in Scitec Nutrition, a leading European sports nutrition producer, to Ascendis Health, a South African publicly listed health and care brands company.
• The value of the transaction is EUR 170 million, of which EUR 150 million will be paid at closing and EUR 20 million a year later;
• Completion of the deal is subject to obtaining relevant regulatory approvals, including Johannesburg Stock Exchange (JSE) approval and Ascendis shareholder approval at a general meeting of shareholders.
Scitec produces and sells a wide range of sports nutrition products, primarily under its trademark brand Scitec Nutrition, which ranks amongst the leading sports nutrition names across Europe and globally. In 2012 the company was acquired by PEF VII and a co-investor, and since then it has continually developed through significant investments into a European production base, new product launches and expansion into new markets including the USA. Today, Scitec is present in nearly 90 countries worldwide and employs over 700 people. In 2015 the company recorded approximately EUR 100 million in revenue and EUR 11 million in net profit. Scitec is vertically integrated, with an in-house research and development department and a modern, GMP-certified manufacturing facility.
Ascendis Health is a fast growing health and care company producing market-leading branded products for humans, animals and plants. Founded in 2008 and listed on the JSE in 2013, the group’s strategy is to continue building a synergistic portfolio of health product brands that cover the value chain from imports of raw materials, manufacturing and distribution to consumers via retail and direct selling channels. The group is increasingly focused on international expansion from its base in South Africa, completing its first offshore acquisition in 2015 with the purchase of an initial 49% stake in Spanish pharma company Farmalider. Ascendis’ brands are currently exported to more than 50 countries globally.
“Scitec’s heavily customer-focused business model delivers high quality and reliability in a market where consumers know what they want. This, along with the outstanding taste and efficacy of its products, is one of the reasons why the company has so successfully developed over the last few years,” said Robert Manz, managing partner at Enterprise Investors, responsible for the transaction. “The company is poised for continuous international expansion in the sports nutrition industry and we believe Ascendis is a serious and committed long-term investor that is able to support Scitec in its next phase of development,” he added.
Dr Karsten Wellner, chief executive officer of Ascendis Health, said “Scitec Nutrition is a great brand and is well established in key global sports nutrition markets. “This acquisition complements our global strategy as it provides a platform for international expansion in the sports nutrition and wellness industry. Through the Scitec acquisition we will have the
opportunity to accelerate the offshore expansion of the Ascendis sports nutrition brands, Evox and SSN, and at the same time will look to grow Scitec’s sales in South Africa,” he said.