Private equity firms have shown a large appetite for vitamins, minerals and supplements companies, and perhaps even more so through the pandemic with health and nutrition top of mind.
But not all sale processes in the category are going smoothly even as sales spike. Goli Nutrition recorded tremendous growth in a short span of time but buyers are hesitant to bet on the immunity-boosting supplements company because of fears of investing in a fad, according to three sources familiar with the process.
The company, best known for its apple cider vinegar gummies, engaged Centerview Partners in late 2020 to explore a sale, only a year after its founding, sources said.
Most strategics passed on the deal but the company remains in the market, according to one of the sources. The West Hollywood, California-based company expects to generate $75 million in EBITDA and $750 million in revenue this year, with the process aiming to command at least 10x EBITDA, sources said.
Healthcare: Meanwhile, another billion-dollar-plus healthcare deal is in the making, with Vohra Wound Physicians recently moving into the second round of its PE-only sale process, sources familiar with the process told me.
Trivest Partners, which sources said owns a less than 10 percent stake in the company, is looking to exit; founder and CEO Dr. Vohra intends to sell a significant portion of his investment, following which a new incoming investor would assume majority control, they said.
The Miramar, Florida-based company expects 2021 EBITDA to approach $100 million, up from around the ballpark of $40 million of EBITDA when Trivest backed Vohra in December 2016, sources said. The process is targeting at least a 14x EBITDA multiple, according to some of the people, which implies a deal could value Vohra at close to $1.4 billion or more.
Vohra’s network of employed physicians provide wound care services in skilled nursing facilities. The idea is that it helps prevent hospitalizations by reducing the number of wounds going untreated at these centers. In turn, it reduces costs for the entire health system while improving care.
High gross margins and other metrics present an attractive investment profile, but Vohra’s big exposure to skilled nursing facilities has deterred some who don’t like the end-market. Read my full report on PE Hub for all the deets.
Deal: Comvest Partners has made a strategic investment in Gen3 Marketing, a multinational digital marketing services firm and one of the largest agencies in the $8 billion industry known as affiliate marketing.
Affiliate marketing is a form of digital advertising in which e-commerce publishers of digital content – which include news and entertainment sites, review sites, blogs, and coupon and loyalty sites – are compensated to promote a company’s products and services.
“With consumers spending more time online, digital strategies represent a steadily growing share of advertisers’ overall marketing spend. Affiliate marketing has become an increasingly popular and important channel allowing advertisers to cost-effectively convert sales through targeted content,” Maneesh Chawla, senior partner at Comvest Partners.