Carlyle Group Acquires Caritas, Divest Nature Bounty

carlyle group

Carlyle ponders the sale of The Nature’s Bounty Company. The deal is valued at up to $6 billion.

Industry sources say Carlyle Group may sell the international arm of the business — Holland & Barrett — if no one wants the whole company.  The same people believe Asian investors may express interest; Holland & Barrett remains popular in Asia. Analysts believe the mineral, supplement and vitamin sector undergo changes. Fewer people buy all three. It has become a slow growth industry.  Therefore, analysts believe acquisitions and mergers make sense. All the companies want to consider their best way to success.

The Carlyle Group bought The Nature’s Bounty in 2010 for about $4 billion.  The company made $3 billion in revenue in 2016.

In addition, Carlyle acquired Claritas from Nielsen this week.

Claritas provides insight into consumer behavior for marketing professionals. The company uses proprietary segmentation analysis  and PRIZM, a product it offers, helps professionals across several fields. Claritas released a statement about the acquisition from its CEO Mike Nazzaro.

“We have long shared a belief with the Carlyle team in the growth potential of data-driven marketing and have long sought the best platform to capture this market opportunity. Claritas’ heritage, powerful products and talented team are the perfect platform to lead the innovation of this space. We are excited to work with Carlyle and believe Claritas will be well-positioned as a standalone company to invest in people, products and partnerships to drive innovative enhancements for clients. As a standalone organization, we will drive enhancements to marquee products like PRIZM® and power broad innovations with behavioral data and predictive analytics.”

In addition, Adam Glucksman and David Stonehill, Managing Directors with The Carlyle Group commented on the deal too:

“Claritas is the gold standard in consumer segmentation and activation. The big data revolution has created rising demand for consumer insights and Claritas is benefitting from that trend. We are confident Claritas will thrive as an independent company, continuing to innovate and provide best-in-class service to its current and future customers.”

Glucksman and Stonehill’s confidence may come from Nazzaro’s history. Nazzaro served as founder and CEO of Nielsen Catalina Solutions. Plus, he worked at Proctor & Gamble in the past. He Nazzaro and his staff exerted influence in the marketing industry. They created and managed several high-profile brands.

Carlyle Group Financials

Money for the acquisition derived from one of Carlyle’s equity funds. Observers estimate the fund’s worth at over $2 billion. The fund invests in middle-market companies throughout the United States, Canada, and Mexico. Nazzaro claims his business numbers thousands of clients. The company zeroes in on analytics companies for new investments. Claritas was founded over 50 years ago. Nielsen bought Claritas in 2009 but sold the company to simplify its product offerings.

The Carlyle Group manages nearly $170 billion of assets across hundreds of funds. The company says it invests wisely and creates value for public pensions and other investors.  The Group has expertise in several industries including: aerospace, financial services, healthcare, and transportation. The workforce numbers 1,625 strong in offices on six continents.

Source: The Street


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