CDH exits New Zealand supplements brand to Nestle

The China-based private equity firm acquired an 80% stake in TBHC in 2016, according to AVCJ Research. The key assets – which will now fall under Nestlé Health Science’s control – are Go Healthy, which claims to be New Zealand’s leading supplement brand, Egmont, a Manuka honey brand, and a vitamins, minerals, and supplements manufacturing facility in Auckland.

CDH helped turn TBHC from a market leader in New Zealand in a single product category, run by a small group of founders, into a more diverse business by product range and by geographic coverage. During the holding period, capacity quadrupled, and Go Healthy became a top-10 brand in the much larger Australian market. Steps were also taken to grow in China, Vietnam, Singapore, and Korea.

Egmont was a bolt-on acquisition intended to leverage TBHC’s existing distribution channels. The company bought a 51% interest in 2017 and took full ownership in 2020.

Nestlé Health Science already has a presence in New Zealand’s vitamins, minerals, and supplements category through Solgar. Its other brands in the country include Optifast, Sustagen, Alfamino, and Vital Proteins.

“Go Healthy and Egmont are trusted brands with a track record of strong growth which complement our global portfolio of active lifestyle and health and wellness nutrition brands very well,” said Paul Bruhn, head of Oceania, Asia, the Middle East, and Africa at Nestlé Health Science, in a statement.

“We also see the opportunity to accelerate growth in the region through the manufacturing facility in Auckland which will enable us to bring new products to local markets faster.”

Nestlé Health Science is Nestle’s standalone healthcare nutrition business. It has a portfolio of science-based consumer health, medical nutrition, pharmaceutical therapies, and vitamin and supplement brands that are sold across more than 140 countries. Revenue came to CHF 13.2bn in 2021, or 15.1% of the parent company’s overall revenue.

CDH is currently deploying its sixth flagship US dollar-denominated private equity fund, which closed on USD 1.5bn in late 2019. The GP concentrates on China but makes investments overseas where there is a China angle. Other portfolio companies in Australia and New Zealand include medical device maker Sirtex Medical. It was privatised in 2018 at a valuation of USD 1.4bn.

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• Topics
• Australasia
• Greater China
• Trade sale
• Consumer
• New Zealand
• China
• CDH Investments Management