Orkla Health has acquired 100% of the shares in Healthspan Group Limited, a supplier of dietary supplements in the British market.
Healthspan was established in 1996 and has since built up a strong brand and a broad range of dietary supplements and skin care products. 92% of the company’s sales are made directly to consumers and the company has around half a million active customers.
“This acquisition is a strategically important purchase for us along several dimensions. 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,” says Orkla President and CEO Jaan Ivar Semlitsch.
Healthspan has a portfolio of over 400 different products, most of which are sold under the Healthspan brand. The company has a network of specialists and experts with whom it collaborates, allowing market trends to be identified quickly, and an efficient organisational structure to rapidly bring new products to the market.
“Healthspan will be operated as a stand-alone company under Orkla Health. At the same time, the company will be able to tap into Orkla’s strength and expertise to drive further growth. Through the acquisition of Healthspan, we are reinforcing our position in consumer health and establishing a new home market for Orkla Care,” says Hege Holter Brekke (shown in the main picture), Orkla EVP and CEO of the Orkla Care business area, of which Orkla Health is a part.
Healthspan CEO, Martin Talbot says: “This is an exciting opportunity for Healthspan, we will continue to operate as a stand-alone 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.”
The current management team will continue to operate the business following the acquisition. Healthspan has 170 employees, the business is based in Guernsey and has product distributed from centres in Great Britain, Ireland and New Zealand.
Orkla Health is purchasing Healthspan from the estate of the founder Derek Stephen Coates who passed away in 2020. The parties have agreed on a purchase price of GBP 65 million on a cash and debt free basis. In addition, the agreement includes the possibility of up to GBP 20 million of additional purchase price depending on the company’s results (EBITDA) in the next two financial years.
In 2021, Healthspan had a turnover of GBP 50.0 million and normalised profit of GBP 4.7 million (EBITDA). Most of the turnover comes from Great Britain.
The company will be consolidated into Orkla’s financial statements as of 1 March 2022.
