Vital Proteins, a Chicago-based maker of popular collagen supplements, has sold a majority stake to Nestlé Health Science (NHSc), the nutritional science subsidiary of Switzerland-based Nestlé.
Terms of the deal, which is still subject to regulatory approval, were not disclosed.
Founded in 2013 by Kurt Seidensticker, Vital Proteins sells a variety of products made from varieties of bovine hide collagen peptides, marine collagen and beef gelatins, which promise to improve the health of joints, ligaments and tendons, as well as hair, skin and nails.
The company sells supplements, beverages and food products, like protein bars, across 35,000 retail locations in North America and Europe. Vital Proteins products can be found at retailers like Whole Foods, Target, Costco and Sephora.
The acquisition will allow Vital Proteins to expand its reach globally with the help of Nestlé’s expansive network. NHSc has other vitamin, mineral, supplement and wellness brands in its portfolio, including Atrium Innovations, Garden of Life, Pure Encapsulations and Persona.
Vital Proteins says it will continue to operate as a standalone business, and Seidensticker will remain CEO and based in Chicago.
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"We at Vital Proteins, alongside Nestlé Health Science, are committed to expanding our wellness platform to the world,” Seidensticker said in a statement. “We are partnering together to continue the evolution of the functional nutrition space through premium products and innovation that meet customers where they are in their wellness journey. Joining NHSc allows us to take Vital Proteins to the next level by leveraging resources, scale and capabilities, and moving toward a future with an expanded offering of science-backed products."
Last summer, Vital Proteins opened a new headquarters in the West Loop and currently employs 335 people. In 2017, Vital Proteins raised $19 million in venture capital funding from CAVU Venture Partners.
To grow its beauty and wellness empire over the last six years, Vital Proteins has inked partnerships with celebrities and social media influencers. The company established a partnership with Kourtney Kardashian after she approached the startup to make exclusive products based on its collagen blend.
Vital Proteins has also received anecdotal endorsements on social media from Jennifer Aniston, Carrie Underwood and Jennifer Lopez. Even the Chicago Cubs took Vital Proteins during their 2017-2018 baseball season.
"This is an exciting opportunity for Nestlé Health Science to enter a growing area of nutrition with a successful brand," said Greg Behar, the CEO of NHSc, in a statement. "In combining our efforts to optimize health through nutrition, we can achieve even more to help our consumers live fuller, more vibrant lives."
