Seller

Acquisition of

buyer

HTC Group - A leading independent provider of health supplements to healthcare, beauty and independent retailers across the UK

- Growth deal

- May 2019

- Value: Undisclosed

Highlighted market trends, valuation metrics and acquisition targets

Approached a broad range of targets across the sector, eliciting multiple investment opportunities for our client

Negotiated attractive deal structure including earn-out, with initial cash out partially funded by new debt facilities

Client Background

Rickitt Mitchell was appointed by MCI Health Investments to assist in mapping potential acquisition targets within the UK Nutraceutical sector.

Originally founded in 1983, HTC is a supplier of premium health supplements and sports nutrition products to both high street and online retailers. Customers include Holland & Barrett, Boots and The Hut Group.

Rickitt Mitchell approached Peter Groves (Managing Director of HTC) in May-18, and subsequently led the negotiation for and eventual acquisition of HTC in May-19.

HTC Group - A leading independent provider of health supplements to healthcare, beauty and independent retailers across the UK
HTC Group - A leading independent provider of health supplements to healthcare, beauty and independent retailers across the UK

The Outcome

Achieved a sensible acquisition price for our client and assisted in refining the business strategy post acquisition.

The deal enabled key shareholders of HTC to step down whilst retaining the services of the established FD and MD to assist with the continued operations of the business.

HTC is forecast to grow rapidly, with EBITDA set to double over a 3 year period as a result of new sales activitiy, the implementation of improved pricing policies and the shift in product mix to existing customers towards higher priced non-commoditised products.

How we added value

Rickitt Mitchell cultivated multiple targets simultaneously to ensure MCI Health had a strategic view of M&A activity and valuations across the nutraceutical sector.

Negotiation of an exclusivity agreement and strong process management enabled MCI Health to achieve the acquisition at the original consideration price, despite strong trading during the process.

Rickitt Mitchell supported a competitive £2m fundraising process, which funded 30% of day 1 cash paid to exisitng shareholders and will support the working capital of the business through future growth.

 "We are delighted to have invested into the natural health and well-being sector, which continues to be a strong choice for people of all generations."

- David O'Brien | MCI Director
Seller

Acquired by

buyer

Exit deal

Value: Undisclosed

Oct. 31, 2021

Seller

Joint Venture

buyer

Growth deal

Value: Undisclosed

Oct. 13, 2021

Seller

Acquired by

buyer

Exit deal

Value: £9m

Sept. 30, 2021

Seller

investment from

buyer

Exit deal

Value: Undisclosed

Feb. 28, 2021