Balchem acquires MSM manufacturer Bergstrom Nutrition

By Hank Schultz

- Last updated on GMT

©Getty Images - Kritchanut
©Getty Images - Kritchanut

Related tags Msm M&A

Balchem has acquired Bergstrom Nutrition, manufacturer of a nature-identical form of MSM. Terms of the deal were not disclosed.

Bergstrom, whose parent company is known as Cardinal Associates, is based in Vancouver, WA.  The company manufactures OptiMSM, a branded form of methylsulfonylmethane.  This organosulfur compound is found in small amounts in many plants.  

The compound is often used to lessen the inflammation associated with joint conditions.  Bergstrom obtained FDA notified GRAS status on the ingredient in 2007. It addition to joint health, it markets the ingredient for sports nutrition, skin and beauty, healthy aging, and pet health.

“We are excited to welcome Bergstrom Nutrition to Balchem. As the MSM market leader, Bergstrom Nutrition has excelled in advancing the science and presence of MSM globally. The addition of OptiMSM to our portfolio provides a synergistic scientific advantage in Balchem’s key strategic therapeutic focus areas such as longevity and performance and is a strong fit with Balchem’s specialty, science-backed mineral products. We look forward to expanding marketplace opportunities together,”​ said Ted Harris, Balchem’s CEO and president.

Following the acquisition, Bergstrom Nutrition will be included in Balchem’s Human Nutrition and Health business segment and integrated into the Minerals & Nutrients business unit.

Second big deal in 2022

This is Balchem’s second major ingredient acquisition this year.  In mid April the company announced its acquisition of vitamin K2 manufacturer  Kappa Biosciences​ from its majority owner, the Norwegian Verdane Edda investment fund, for an enterprise value of NOK 3.175 billion (approximately US$ 338 million at the time).

This transaction represented an EV/EBITDA multiple of 18x based on the 2022 forecast EBITDA. Kappa’s forecast 2022 revenues are approximately NOK 500 million (approximately US $53 million) with a strong growth and margin profile.

The transaction was financed through Balchem’s existing revolving credit facility and cash on hand.

Balchem’s share price dropped after the Bergstrom announcement, falling more than 4% in value to about $132 a share.  Balchem reported $239 million in revenue in its most recent earnings report, which was filed July 29, 2022.

Related news

Show more

Related products

show more

Stay one step ahead in the collagen market

Stay one step ahead in the collagen market

Content provided by Bioiberica | 26-Feb-2024 | White Paper

It's no secret that interest in collagen is at an all-time high – especially for joint health. This presents a real opportunity for manufacturers...

Krill oil supports six key areas of healthy aging

Krill oil supports six key areas of healthy aging

Content provided by Aker BioMarine | 14-Feb-2024 | White Paper

The global population is getting older—according to WHO by 2050 the world’s population over 60 years will double and the population above 80 years will...

Dynamic Duo - More Power, Less Fatigue

Dynamic Duo - More Power, Less Fatigue

Content provided by Enovate Biolife LLC | 23-Jan-2024 | White Paper

Better physical performance & vitality have deep connections to muscular as well as cardio-respiratory health.

Boost Your Sports Nutrition Solution with Peptan

Boost Your Sports Nutrition Solution with Peptan

Content provided by Rousselot | 13-Nov-2023 | White Paper

Athletes are prioritizing their well-being and seeking nutritional solutions to optimize recovery, making it an indispensable aspect of their performance.

Related suppliers

Follow us

Products

View more

Webinars