Information on the Target

Vitafy Brands, established in 2014, has emerged as a prominent direct-to-consumer (D2C) online platform in the consumer health sector, specializing in the development and provision of functional over-the-counter (OTC) products for health-conscious consumers. The company has established a robust online presence through dedicated branded shops, allowing it to maximize product development and marketing advantages.

Over the past few years, Vitafy Brands has enhanced its market position through multiple strategic acquisitions within the healthy living sector. Notably, in 2019, the company acquired Bodylab and Gymqueen, followed by further acquisitions of 'vom Achterhof' and C.P. Sports in early 2021. These initiatives have played a crucial role in expanding Vitafy’s brand offerings and enhancing its market reach.

Industry Overview in Germany

The German consumer healthcare industry is experiencing significant growth, driven by a rising consumer awareness of health and wellness products. The market is characterized by an increasing shift towards preventive healthcare and self-medication, reflecting a broader trend in Europe.

In recent years, digitalization has transformed how consumers access healthcare products, with a pronounced shift towards online shopping and telehealth solutions. This trend has been catalyzed by the COVID-19 pandemic, which expedited the adoption of e-commerce platforms in the healthcare sector.

Germany, as one of Europe's largest consumer markets, offers an extensive array of healthcare products. The integration of online and offline retail strategies is becoming increasingly important for companies aiming to maintain a competitive edge in this dynamic environment.

Furthermore, the regulatory landscape in Germany fosters innovation in consumer health products, supporting new entrants like Vitafy in their quest for market penetration. As consumer preferences evolve towards natural and organic products, companies that successfully adapt to these changes are poised for substantial growth.

The Rationale Behind the Deal

The merger between Vitafy Brands and EVP Group is a strategic response to the growing demand for a comprehensive approach in the consumer healthcare market. By combining Vitafy’s online capabilities and established brand portfolio with EVP Group’s extensive manufacturing resources, the newly formed entity positions itself as a cornerstone in the European market. Additionally, this collaboration is set to enhance both companies' ability to innovate and respond to market demands, effectively increasing their competitive advantage.

The synergy also facilitates a mutual benefit strategy, leveraging Vitafy's D2C model alongside EVP's footprint in traditional retail, promoting significant cross-selling opportunities and expanding both entities' market reach.

Information About the Investor

Cipio Partners is a prominent investment management firm founded in 2003, specializing in European growth capital and minority buyouts within the technology sectors. The firm focuses on supporting growth-stage technology companies across Europe, targeting businesses with revenues between €10-50 million and typically committing initial investments of €3-10 million.

With offices in Luxembourg and Munich, Cipio Partners boasts a wealth of experience in the European market and aims to empower innovative companies through strategic investments that fuel growth. Their partnership with Vitafy Brands exemplifies their commitment to backing potential industry leaders in the consumer healthcare space.

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The merger between Vitafy Brands and EVP Group presents a promising investment opportunity within the consumer healthcare sector due to the increasing demand for health-focused products and services. By uniting their strengths, both companies can optimize their operational efficiencies and market strategies, fostering growth in a burgeoning industry.

This strategic alliance enables Vitafy to enhance its international presence while taking advantage of EVP's established infrastructure. The anticipated cross-selling potentials and the incorporation of both online and offline sales channels offer a competitive edge that could lead to significant market share acquisition.

Moreover, the experienced leadership teams of both companies bring invaluable expertise, guiding the newly formed entity towards robust market positioning. The combination of manufacturing capability and a strong digital presence creates a versatile business model that can adapt to evolving consumer preferences.

In conclusion, this merger is likely to be a beneficial investment, as it not only positions the combined entity as a major player in the European consumer healthcare market but also aligns with the growing consumer trends towards health-conscious living.

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