US-based nutritional bars and functional powder products manufacturer Nellson Nutraceutical is to acquire Le Groupe Multibar, nutritional and snack bars producer, for an undisclosed amount.
With the deal, Nellson will be able to increase its production capabilities, expand its product lines and channel and diversify its customer mix.
Nellson is a portfolio company of New York-based Kohlberg. Following completion of the transaction, the combined company will have four manufacturing and R&D facilities in the US, Canada and internationally.
"The merger with Multibar further strengthens our position as a strategic partner of choice within the fast-growing nutraceutical and functional snack bars sector."
Nellson CEO Scott Greenwood said: "The merger with Multibar further strengthens our position as a strategic partner of choice within the fast-growing nutraceutical and functional snack bars sector.
"This acquisition combines two respected nutritional bar manufacturers and creates a platform for growth with remarkable capabilities in new product development and best-in-class manufacturing."
Kohlberg partner Seth Hollander said: "Since our acquisition of Nellson in 2013, we have been focused on identifying acquisitions as a means to grow and expand our capabilities, product offering and customer base. Multibar represents a key step toward that end."
Ahmed Wahla who is also a partner of Kohlberg said: "Nellson and Multibar are highly complementary businesses, and we are pleased to capitalize on this unique opportunity to create a larger, more diversified company capable of better serving our combined customer bases."
The company expects to close the transaction in around 30 to 60 days and is subject to regulatory approvals and other customary closing conditions.
