A news report that made headlines in December last year was based on the outlook for mergers and acquisitions (M&A) in the health and wellness sector. The news was published in the multimedia publishing brand, Nutritional Outlook.
The overall M&A taking place in the U.S. in the recent past has never been seen before. According to a global provider of financial and compliance information, software, and services, the year 2022 has shown an emerging trend in U.S. mergers and acquisitions. Total transactions amounting to $2.9 trillion for nearly 60% of all global deals were reported in 2021, showing an increase of 55% from $1.9 trillion in 2020.
Private equity (PE) investors are showing interest in natural brands which is holding promise for companies hoping to be absorbed by well-established firms, both within and outside the U.S. This would help non-U.S. investors to find easy distribution channels to sell their products in the U.S. market. PE investors are working towards growing their nutraceutical portfolio via acquisitions.
The last quarter of 2022 witnessed the acquisition of Good Catch, a vegan seafood brand by Wicked Kitchen. Similarly, the Boston-based skincare and beauty brand Follain, was acquired by Credo Beauty. In short, as 2023 progresses, more M&A activity is set to take place.
Source: Joy Choquette. Health and wellness: Mergers and acquisitions in 2023. Nutritional Outlook. 3 February, 2023. https://www.nutritionaloutlook.com/view/health-and-wellness-mergers-and-acquisitions-in-2023
