Mergers, Acquisitions, Investments Grew in 2011

SAN DIEGO, Calif.Mergers and acquisition in the nutrition and health and wellness industries increased 10 percent in 2011, according to Nutrition Capital Network (NCN). The average investment size also rose, from $8 million in 2010 to $10 million in 2011. The category of healthy foods also grew from 13 percent of total food sales in 1995 to 24 percent today.

Growth rates in the natural and organic food, dietary supplement, and other nutrition, health and wellness categories are making small and medium-size companies attractive to larger companies, many of which are experiencing stunted growth in their traditional markets," said Grant Ferrier, an NCN principal and cofounder.

Ferrier said large strategic investors are finding growth opportunities in his sector because of the consumers' expanding consumer focus on health and wellness and the growing penetration rates of many of these newer product segments. Rising health care costs, an aging population and dissatisfaction with mainstream medicine, especially for chronic ailments, are also helping to fuel growth. NCN said a large amount of uninvested funds among venture capital and private equity firms, large corporations, and angel investors bodes well for companies seeking financing in 2012.

NCN pointed to General Mills acquisition of Food Should Taste Good, a natural snack company as a notable transaction in the first quarter 2012. General Mills is one of NCNs 25 Cornerstone Investors.

Large transactions tend to grab most of the media attention, but specialty transactions like Starbucks acquisition of Evolution Fresh, and Smart Balance acquiring Glutino, both in 2011, are attracting more attention to the industry," Ferrier said. But the majority of deals happen below the radar, which is where some really exciting developments and innovation in health and nutrition occur."

The next NCN Investor Meeting is set for May 22 and 23, 2012 in Washington.

Merging and acquiring new businesses often leads companies into new international markets. Fine are the best ways to pursue global opportunities in the SuppySide MarketPlace education session, "Strategic Globalization", on Wednesday, May 9, 9 a.m. to 11 a.m., Javits Center, New York.