Private Equity Giants Bain Capital and Blackstone Eye UK Vitamin Maker Vitabiotics

Two of the world's leading private equity firms, Bain Capital and Blackstone Inc., have entered the race to acquire Vitabiotics Ltd., the UK-based vitamin and mineral supplements manufacturer, according to sources familiar with the matter. The news comes as Vitabiotics' current majority shareholder, Dutch food giant DSM, explores options to sell its stake in the company.

Vitabiotics, which was founded in 1970, is best known for its popular supplement brands like Wellman, Wellwoman, and Omnavit. The company's current chairman is Tej Lalvani, a well-known businessman and former investor on the BBC's Dragons' Den show.

Bain Capital and Blackstone are not newcomers to the healthcare sector. Bain Capital has previously invested in healthcare companies like Medline Industries, Fresenius Medical Care, and McKesson Corporation. Blackstone, on the other hand, has a significant presence in the healthcare industry through its investment in HCA Healthcare and its acquisition of TeamHealth.

The bidding process for Vitabiotics is expected to heat up in the coming weeks, with other private equity firms also reportedly showing interest in the company. However, a final decision on the sale is not expected until late this year or early next year.

DSM's decision to sell its stake in Vitabiotics comes as part of a broader restructuring plan aimed at focusing on its core business areas. The Dutch firm has already divested several non-core assets, including its nutrition business, which was sold to Nestlé for €7.15 billion in 2017.

The potential sale of Vitabiotics is a significant development for the UK vitamin industry, which has seen robust growth in recent years due to increasing consumer awareness of health and wellness. The UK vitamins market is expected to reach £1.5 billion by 2025, according to a report by Grand View Research.

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