Bain Capital has emerged as the leading bidder to acquire Vitabiotics, the UK’s largest nutraceutical firm, as it seeks to capitalise on sustained demand for vitamins, minerals, and wellness supplements following the pandemic.
Competing private equity firms, including TPG Capital and EQT, have exited the bidding process, according to sources familiar with the matter.
Founded in 1971 by Kartar Lalvani, Vitabiotics is currently led by CEO Tej Lalvani, who is also known for his role on Dragon’s Den. The promoters are reportedly seeking a valuation of around £900 million ($1–1.2 billion) for the business, which operates across the UK, India, and China and exports to over 100 countries. However, reduced competition in the bidding process may put downward pressure on the final deal value.
Vitabiotics’ portfolio includes well-known brands such as Wellwoman, Pregnacare, Menopace, Feroglobin, and Perfectil. Its Indian joint venture, Meyer Vitabiotics, contributes roughly 20% of the company’s annual revenue of about ₹3,000 crore. Within India, its Calcimax brand has a strong foothold across therapeutic segments including paediatrics, diabetes, cardiac care, and women’s health.
Several global and Indian players including Carlyle, Blackstone, Lupin, Zydus, Sun Pharma, and Mankind Pharma had evaluated the opportunity. However, some opted out due to the high valuation, while others were interested only in select geographies such as India. The promoters, however, have shown a preference for a full business sale rather than a break-up.
An industry source noted that the company’s complex global structure and uneven performance across regions, along with financial challenges, have made the deal less straightforward.
Houlihan Lokey is advising the promoters on the transaction.
Vitabiotics has expanded its manufacturing capabilities over time, including the acquisition of Sandoz Asia’s facility in Indonesia in 2008, enabling in-house production while continuing contract manufacturing for partners.
Bain Capital already has exposure to the nutrition sector through its acquisition of 1440 Foods in 2023. It also has a longstanding presence in India’s healthcare and pharmaceutical space, including its investment in Emcure Pharma.
The global nutraceuticals market is valued at over $520 billion and is growing at an annual rate of 8–9%, with Asia-Pacific leading regional growth. In India, the sector is estimated at around $8 billion and is expected to grow at an 11% CAGR between 2023 and 2027.
Investor interest in India’s nutraceutical space has accelerated in recent years, with investments rising 2.5 times between 2020 and 2023, outpacing global growth. Increased health awareness, rising incomes, and the expansion of digital and direct-to-consumer channels have driven this momentum.
Recent transactions in the sector include Hindustan Unilever’s acquisition of OZiva and USV’s stake purchase in Wellbeing Nutrition, along with Marico’s investment in Cosmix highlighting growing consolidation in preventive healthcare and nutrition
