Information on the Target

Zoka Pharma, based in Valencia, has established itself as a prominent player in the health and nutrition sector, currently generating an annual revenue of €11 million with a workforce of around 50 employees. With only 30% of its production capacity utilized, Zoka Pharma offers significant potential for growth, as the company aims to double its revenue in Spain to €20 million within the next two years.

The company's robust product portfolio and advanced manufacturing infrastructure enable Aminolabs to diversify its offerings with new categories including gels, baby food, pet supplements, liquids, and probiotics. This acquisition strengthens Aminolabs' production capabilities in core forms such as tablets, capsules, and stick packs, allowing the company to respond more swiftly and flexibly to the increasing market demand.

Industry Overview in Spain

The health and nutrition industry in Spain has been experiencing rapid growth, driven by increasing consumer awareness regarding wellness and preventive healthcare. This sector is characterized by a rising demand for high-quality dietary supplements and functional foods, reflecting a significant shift in consumer preferences towards healthier lifestyle choices.

As the Spanish market continues to evolve, local companies are leveraging innovation to introduce new products that cater to changing consumer tastes and expectations. The proliferation of e-commerce platforms has also enhanced accessibility and distribution channels for health-related products, further propelling market growth.

Spain's strategic geographical location within Europe makes it an attractive hub for businesses aiming to expand operations across the continent. There is considerable investment in research and development activities, fostering an environment conducive to new product innovations and collaborations within the industry.

Moreover, governmental initiatives aimed at supporting health-related enterprises through funding and policy frameworks are contributing to the overall positive outlook for the health and nutrition industry in Spain. These aspects create an encouraging backdrop for acquisitions and partnerships, positioning companies like Aminolabs for success.

The Rationale Behind the Deal

The acquisition of Zoka Pharma is a strategic move that enhances Aminolabs’ capabilities in the competitive health and nutrition market. By integrating Zoka's extensive product array and advanced production facilities, Aminolabs is well-positioned to broaden its market reach and cater to diverse consumer needs more effectively.

This acquisition aligns with Aminolabs’ ambition of pursuing further growth opportunities and represents a clear commitment to providing superior quality solutions to consumers. It is an essential step in fulfilling the ambitious growth trajectory laid out by Aminolabs’ leadership following their management buyout in September 2023.

Information About the Investor

Aminolabs Nutrition is led by its founder Roger Anné, who emphasizes the importance of synergies in business pursuits. After acquiring independence from Waterland Private Equity, Aminolabs has been determined to enhance its market presence through strategic partnerships and acquisitions. The company has the backing of LRM, a long-term investment partner committed to sustainable business development, which complements Aminolabs' growth strategy.

Under the guidance of CEO Vincent Vanhooymissen, Aminolabs aims to strengthen its operations across Europe, with a strategic focus on promising markets such as North Africa and the Middle East. The company's long-term strategy showcases its commitment to excellence and innovation in the health and nutrition sector.

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This acquisition is widely seen as a prudent investment for Aminolabs, given the strong growth potential of both the health and nutrition market and Zoka Pharma itself. By leveraging Zoka's existing capabilities, Aminolabs can diversify its product offerings, tapping into new consumer segments and enhancing its market share.

The integration of Zoka Pharma's workforce and expertise will likely accelerate Aminolabs' innovation capabilities, enabling them to advance in product development and maintain a competitive edge in the industry. Furthermore, the strategic location of Valencia serves as an advantageous base for expanding operations throughout Europe and beyond.

By pursuing this acquisition, Aminolabs signals its commitment to dynamic entrepreneurial growth and the pursuit of strategic partnerships, which are essential for long-term success in the ever-evolving health and nutrition landscape. Overall, this move is a calculation driven by foresight, aligning well with current market demands and future opportunities.

Ultimately, this acquisition not only solidifies Aminolabs’ position in the market but also reflects the company's dedication to delivering high-quality solutions to the global health and nutrition industry, reinforcing their commitment to growth and innovation.

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