Information on the Target

Nutris is an innovative nutraceutical company specializing in the production of functional gummies, a rapidly growing niche due to its appealing and novel form. The company focuses on creating scientifically validated functional projects aimed at improving health outcomes. With a strong presence in the market, Nutris sells its products through pharmacies, health food stores, and specialty shops.

Founded in 2013 and located in Madrid, Nutris has positioned itself as a leader in the manufacture of functional gummies in Europe, achieving substantial annual growth of 60%. The company has seen its revenue increase from €16 million in 2020 to an estimated €25 million in 2021, with an EBITDA margin around 20%. The founders, Pedro de La Fuente and Inés de Santos, will remain at the helm, ensuring continuity in the company's strategic vision.

Industry Overview in the Target’s Specific Country

The Spanish nutraceutical industry has experienced significant growth, driven by consumer preferences shifting towards natural and functional food products. The growing awareness of health and wellness among consumers, coupled with an aging population, has boosted demand for supplements and functional foods. This trend has spurred innovation, with companies striving to create products that blend health benefits with convenience.

Functional gummies, in particular, have gained traction as a preferred format for many consumers, especially among children, the elderly, and the adult population. This format not only provides health benefits but also offers a palatable alternative to traditional supplements like pills and capsules. With the increasing demand for such products, the market for functional gummies is expected to continue growing at double-digit rates in the coming years.

Spain's nutraceutical sector is also characterized by a vibrant ecosystem of manufacturers, contract developers, and distributors. Nutris itself boasts a robust client base, comprising over 200 customers from various sectors, including nutraceutical laboratories and B2B players, ensuring a comprehensive distribution network for its products.

Furthermore, Nutris has successfully established a significant international presence, with over 50% of its sales originating from exports to key markets such as the USA, France, the Netherlands, and the United Kingdom, making it well-positioned to capitalize on global opportunities in the functional foods sector.

The Rationale Behind the Deal

The partnership with Nazca is a strategic move aimed at fortifying Nutris's position in the functional gummies market. By securing funding through capital expansion, Nutris plans to accelerate its ambitious growth agenda, which includes expanding its product range and increasing its international footprint.

With the expertise and resources provided by Nazca, Nutris is poised to leverage market opportunities effectively and ensure its competitive standing amid growing industry demands. The investment not only injects needed funds but also strengthens Nutris's ability to innovate and stay ahead in a rapidly evolving sector.

Information About the Investor

Nazca is a leading venture capital firm focused on investing in unlisted small and medium enterprises (SMEs) in Spain. With a strong reputation in the market, Nazca specializes in funding family-owned businesses and high-potential projects. The firm's engagement with Nutris is part of its Fund V strategy, which aims to back innovative companies with significant growth prospects.

Strengthening Nutris's managerial infrastructure and international reach, Nazca brings not only financial backing but also extensive experience in scaling businesses. This partnership is expected to provide the operational support and strategic guidance necessary for Nutris to achieve its international aspirations.

View of Dealert

From an analytical perspective, the investment by Nazca in Nutris represents a highly strategic move in a fast-growing market segment. Nutris has demonstrated remarkable growth and innovation capabilities, positioning itself as a leader in a niche that is increasingly relevant to health-conscious consumers. The venture into functional gummies offers a lucrative opportunity to tap into a demographic that prioritizes convenience and health benefits.

Moreover, the enduring leadership of the founding team, with their deep understanding of the nutraceutical market, provides assurance of continuity and expertise. Their commitment to innovation aligns with Nazca's investment strategy, which focuses on supporting companies with unique market positions and adaptable growth models.

As the functional foods market expands, Nutris's strategic initiatives, backed by Nazca's resources and guidance, are likely to yield substantial returns. The company is not only set to expand its product line but also enhance its international visibility, ensuring its competitiveness on a global scale.

In conclusion, the collaboration between Nutris and Nazca appears to be a promising investment venture. Its potential for sustained growth, alongside a strategic partnership, bodes well for Nutris’s future as a frontrunner in the nutraceutical market.

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