KKR, Carlyle sell Bountiful to Nestle, Long Ridge seeks minority stake sale of Carson Group, KKR, DCP invest behind China’s renewed milk demand

KKR is selling its majority stake in The Bountiful Company to Nestle for $5.75 billion.

Happy Friday!

If you’re in search of a fun Friday private equity read, you’ve come to the right place.

Plant-based milks might be mainstream in the US (almond or oat milk, please!), but the trend isn’t a global one. Karishma Vanjani has all the deets on how and why Adopt a Cow – a disruptor in the Chinese dairy market – fielded what she learned was a $100 million investment led by KKR and China’s DCP Capital, the latter which was launched by ex-KKR investors.

The firms see vast opportunity in a farm-to-table traceable milk model as China witnesses a sudden surge in milk consumption. Transparency is a crucial part of the strategy given the region has been long tainted by food-safety scandals.
“In the future we’ll tell consumers the time, date and the batch of cows that produced the milk,” Julian Wolhardt, co-founder of DCP, told PE Hub.

For KKR, the minority investment in the direct-to-consumer brand builds on a long history of wagering on China’s dairy sector. Some of you may recall the outcry that followed China’s biggest milk scandal in 2008 involving the death of 16 babies. KKR subsequently injected roughly $150 million into Modern Dairy.
This time around, KKR largely views Adopt a Cow as a tech-enabled consumer brand investment, KKR Managing Director Chris Sun said. Read Karishma’s story on PE Hub.

More KKR: In breaking Friday morning news, KKR is selling its majority stake in The Bountiful Company to Nestle for $5.75 billion on a cash free, debt free basis. Carlyle Group, which first invested in the business over a decade ago, will also be exiting.

The exit multiples for the nutrition giant translate to 3.1x net sales and 16.8x EBITDA as of March 31, 2021.

You might be familiar with Bountiful’s well-known vitamin and supplement brands, which include: Nature’s Bounty, Puritan’s Pride, Solgar and Osteo Bi-Flex.
KKR bought a majority stake in Bountiful in 2017 from Carlyle, which rolled a stake. The latter originally took the business private in 2010 in a deal valuing what was then called Nature’s Bounty at $4 billion. Sounds like a pretty handsome outcome for both!

Also of note, Nestle’s buy comes after Bountiful in mid-April filed for an IPO. Read PE Hub’s brief on the deal.

Seeking minority investor: Long Ridge Equity Partners is looking to sell a minority stake in Carson Group Holdings, a provider of wealth management services to financial advisors and clients, sources familiar with the process told PE Hub.
The company generates around $100 million in revenue and $40 million in EBITDA, the sources familiar said.

Moelis is running the process, which recently kicked off. Read Milana’s full report on PE Hub.

That’s it for me! Have a great weekend, hubsters, and as always, hit me up at springle@buyoutsinsider.com with your comments, tips or just to say hello.