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Let’s TalkBobbie Acquires Nature’s One in Ohio
Bobbie, an infant formula producer based in California, United States, acquired Nature’s One, a pediatric nutrition company based in Ohio, United States, on July 13, 2023.
Transaction Summary
The Facts of the Acquisition
- Target: Nature’s One is a producer of pediatric nutrition. It produces infant formula, shakes for kids, and for prenatal and postnatal care. The company and its factory are in Ohio. It has been operating since 1997.
- Acquirer: Bobbie is an infant formula producer based in California. It was formed in 2018 and received U.S. Food and Drug Administration approval to sell its infant formula in the United States in 2020. Since then, the company has seen immense growth and interest in its products.
Our Take on the Acquisition
The acquisition of Nature’s One’s factory in Ohio will enable Bobbie to triple its production and move it in-house. Currently, Bobbie’s infant formula production is outsourced to Perrigo, a facility established in 1921, which has an excellent track record. And Bobbie’s products are sold in Target. Bobbie’s larger partners have substantial negotiating power on both the production and distribution sides of the supply chain, and Bobbie’s margins are strained. Moving production in-house Nature’s One’s factory and continuing to outsource to Perrigo while expanding product lines will enable the company to retain its margins.
The Transaction
| Date: | July 13, 2023 |
| Price: | Undisclosed |
| Purpose: | To diversify into new product lines and develop in-house production capacity. |
| Acquirer’s Statement: | Laura Modi, CEO and co-founder of Bobbie – “From inception, Bobbie’s mission has been centered around evolving the infant formula industry, and this acquisition is one of the biggest diversification moves in this very concentrated industry. There is no one better suited to help us pursue this vision than Nature’s One’s founder, Jay Highman – he revolutionized the industry decades ago with his dedication to purity, accessibility, and safety, and this best-in-class facility is no exception. Owning end-to-end production while also continuing our valued partnership with Perrigo is critical as we scale and build the resiliency needed for the future.” |
Target/Seller: Nature’s One
Company Information
| Target: | Nature’s One |
| Website: | naturesone.com |
| Founded: | 1997 |
| Industry: | Food Production – Pediatric Nutrition |
| Type: | Private |
| Employees: | 38 (Self-published on LinkedIn) |
| Locations: | Head Office and Production Plant: 1675 James Parkway, Heath, Ohio, United States |
Product Information
| Products: | Baby’s Only Formulas and Cereal – Assorted formulas and cereals made from organic, dairy, or plant-based ingredients Kid’s Only Beverage – Organic nutritional beverage with no artificial flavors, colors or sweeteners Mom’s Only Nutritional Shake – Prenatal and postnatal shake with organic DHA, choline, and lutein. DHA stands for docosahexaenoic acid, a fatty acid involved in neuronal signaling, which is critical to the nervous system, and maintaining good vision. |
| Market Reach: | United States Canada China Hong Kong Mexico |
Financial Information
| Revenue: | USD $26.2 million (Unconfirmed Source: ZoomInfo) |
| Revenue per Employee: | USD $689,474 (i.e., USD $26.2 million / 38 employees = USD $689,474 – estimated based on the self-reported number of employees and the revenue from ZoomInfo) |
Did You Know?
Infant formula is a special dietary food used to replace or supplement breast milk. The contents vary based on the brand, but most infant formulas are cow milk-based. Specialized formulas are also available for infants with specific medical conditions. Infant formula contains some of the necessary nutrients such as vitamins, minerals, and nutritional supplements.
Target/Seller Overview: Nature’s One
Nature’s One is a privately held company founded in 1997 and based in Ohio, United States. The company is a pioneer in the organic medical nutrition category. It introduced the first organic baby formula to the United States in 1999 under the brand Baby’s Only Organic. Nature’s One has invested heavily in research and development to offer the best in organic and nutritional science. Today most of Nature’s One organic medical supplements remain the first and only in their product categories. These products are sold nationally and internationally through retail outlets and medical suppliers.
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Explore Your Options NowBuyer/Acquirer: Bobbie
Company Information
| Buyer: | Bobbie |
| Website: | hibobbie.com |
| Founded: | 2018 |
| Industry: | Food Production – Infant Formula |
| Type: | Private with six rounds of venture capital funding |
| Employees: | 2,283 (Source: Pitchbook) |
| Total Funding: | USD $141.5 million |
| Locations: | Head Office: 1500 Castro Street, San Francisco, California, United States |
| Investors: | PowerPlant Partners: An emerging growth-equity firm investing in disruptive companies re-architecting the food system, based in California, United States Park West Asset Management: An employee-owned hedge fund sponsor based in California, United States VMG Partners: A private equity firm that specializes in buyouts and growth capital investments, based in California, United States NextView Ventures: A venture capital firm that invests in companies that use technology to drive a brighter collective future. Offline Ventures: A venture capital and private equity principal services firm based in California, United States Bolt: A pre-seed venture firm investing where the digital and physical world intersects. The firm is based in California, United States 1st Course Capital: An early-stage venture capital firm that invests in exceptional entrepreneurs transforming food systems. The firm is based in California, United States Wave Capital: A venture firm that specializes in marketplaces based in California, United States |
Product Information
| Products: | Organic Infant Formula – U.S. Department of Agriculture (USDA) Certified and EU Organic, without added palm oil and no soy allergens Organic Gentle Infant Formula – Certified USDA and EU Organic tolerance formula made with 100% lactose carbohydrates |
| Market Reach: | United States |
Financial Information
| Revenue: | USD $100 million (Source: TechCrunch, a news website) |
| Revenue per Employee: | USD $584,795 (i.e., USD $100 million / 171 employees = USD $584,795 – estimated based on the number of employees and the revenue from TechCrunch) |
Buyer/Acquirer Overview: Bobbie
Bobbie is an infant formula producer in the United States and was founded in 2018. Bobbie received U.S. Food and Drug Administration (FDA) approval in 2020. Its European-style recipe meets all FDA requirements, is made with pasture-raised milk from farmer-owned cooperative Organic Valley farms, and is the only infant formula to receive both the Clean Label Project’s Purity Award and Pesticide Free Certification. Within a year of launch, Bobbie became the fastest-growing infant formula company to enter the United States market since the 1980s. Bobbie is working to shake the stigma and evolve the conversation around how parents feed their babies to one of confidence, not comparison, from how we feed to what we feed. Bobbie’s infant formula is produced by Perrigo, a best-in-class facility with an excellent track record. Products are sold online and nationally in Target stores.
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