Contract drug manufacturer Catalent Inc. is expected to announce Monday that it has agreed to buy closely held Bettera Holdings LLC for $1 billion, according to people familiar with the matter, the latest deal involving nutritional supplement companies.
The all-cash deal, which is expected to be announced Monday morning, would expand Catalent’s manufacturing capabilities for vitamins, minerals and supplements to make them in gummy form, the people said. The transaction is expected to close by the end of the fourth quarter.
Bettera, based in Plano, Texas, and backed by private-equity firm Highlander Partners LP, manufactures gummy, soft-chew and lozenge forms of vitamins and supplements. Bettera has about 500 employees.
Bettera’s sales last year totaled about $150 million, according to the people, and are forecast to grow at least 20% annually in the short term.
Gummy vitamins and supplements, initially created and marketed for children, are increasingly popular among adults, especially younger demographics. The global gummy vitamins market is projected to reach $9.3 billion by 2026, compared with $5.7 billion in 2018, according to an Allied Market Research report released last year.
