A private equity fund (PEF VII) managed by Polish Enterprise Investors, together with its minority co-investors (including Morgan Stanley Alternative Investment Partners) agreed to sell a 100% stake in Hungary’s Scitec Nutrition, to Ascendis Health, a South African publicly listed health and care brands company, according to a press release published yesterday.
The value of the transaction is €170 million, of which €150 mln will be paid at closing and €20 mln a year later. The 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, the statement said.
In 2012 the company was acquired by PEF VII and a co-investor, and has since continually developed through significant investments into a European production base, new product launches and expansion into new markets including the United States, according to the press release.
Today, Scitec is present in nearly 90 countries worldwide and employs over 700 people. In 2015 the company recorded approximately €100 mln in revenue and €11 mln in net profit. Scitec is vertically integrated, with an in-house research and development department and a modern, GMP certified manufacturing facility.
Scitec produces and sells sports nutrition products, primarily under its trademark brand Scitec Nutrition, present across Europe and globally.
“Scitec’s heavily customer-focused business model delivers high quality and reliability in a market where consumers know what they want” 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.
“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,” Dr. Karsten Wellner, chief executive officer of Ascendis Health, said.