Canada Vitamin Maker Jamieson Labs Said to Scrap $1 Billion Sale

  • Private equity owner cancels auction of supplement producer
  • Sale had attracted interest from By-health, Shanghai Pharma

Jamieson Laboratories Ltd., which has been making vitamins in Canada since 1922, has canceled an auction to sell itself, people with knowledge of the matter said.

Shanghai Pharmaceuticals Holding Co. and Chinese dietary supplement maker By-health Co. were among suitors that had expressed interest in acquiring the company, the people said, asking not to be identified as the information is private. Jamieson’s owner, U.S. buyout firm CCMP Capital Advisors, was seeking as much as $1 billion in the sale, according to the people.

Chinese consumers’ demand for dietary supplements has been rising as higher incomes, and problems such as obesity and diabetes, drive a desire for healthier lifestyles. Announced Chinese acquisitions of overseas health-care assets totaled $8.2 billion during the past 12 months, double the amount in the previous year, data compiled by Bloomberg show.

Shanghai Pharmaceuticals and By-health have never completed an overseas acquisition worth more than $50 million, according to the data. Houlihan Lokey Inc. and Nomura Holdings Inc. were advising Jamieson on the sale, the people said. 

Spokesmen for CCMP, Houlihan Lokey, Nomura and Shanghai Pharmaceuticals declined to comment. Representatives for By-health and Jamieson didn’t immediately respond to e-mails seeking comment.

CCMP bought Jamieson in 2014 for about C$300 million ($230 million), according to data compiled by Bloomberg. The vitamin maker has corporate offices in Toronto and makes its products at facilities in Windsor, Ontario, according to its website.

By-health, which has a market value of $3.2 billion, was founded in 1995 in the southern Chinese city of Zhuhai. The company announced earlier this year it will form a joint venture with U.S. health supplement maker NBTY Inc. to sell products including “Nature’s Bounty” vitamins and “MET-Rx” protein powders in the Chinese market.

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