Schiff buys into probiotic business
SALT LAKE CITY — Schiff Nutrition on Tuesday announced its $40 million acquisition from Ganeden Biotech of the worldwide exclusive rights to use the probiotic technology GanedenBC30 in the over-the-counter and dietary supplement space, along with the brands Sustenex and Digestive Advantage, under which GanedenBC30 currently is sold.
"By acquiring the rights to the leading probiotics technology, we have entered a new, rapidly expanding category that creates accretive growth opportunities,” Schiff Nutrition president and CEO Tarang Amin said. “We intend to leverage this enviable technology and grow the Sustenex and Digestive Advantage lines. In addition, we plan to capitalize on Schiff’s brand marketing know-how, provide incremental marketing investment and use our well-established customer relationships to increase distribution.”
The assets and brands acquired from Ganeden generated net revenue of approximately $17 million for the year ended Dec. 31.
The probiotics category is growing at more than 20% on an annualized basis, according to the Nutrition Business Journal, as cited by Schiff.