DCC plc, the leading international sales, marketing and support services group, announces that DCC Health & Beauty Solutions has acquired Ion Laboratories, Inc (‘Ion’), a provider of contract manufacturing and related services to the growing health supplements and nutritional products market in the US.
The acquisition of Ion follows the acquisition of Elite One Source in February 2018 and will significantly enhance DCC Health & Beauty Solutions’ service offering to customers in the US market. Ion has a broad product format capability encompassing tablets, capsules, powders and liquids across a variety of product categories including herbal and botanical products, probiotics and liquid nutritionals. Ion is currently commissioning a new nutritional gummies manufacturing line which will provide DCC Health & Beauty Solutions with capability in this fast growth category. Ion’s customer base largely consists of specialty brand owners and its service offering includes product development, formulation, manufacturing, packaging and regulatory services.
Ion’s well-invested facilities in Largo, Florida extend to 350,000 square feet and provide capacity to meet its organic growth plans. The facilities comply with FDA cGMP (current Good Manufacturing Practices) and Health Canada standards and are certified by leading third-party regulatory bodies, including NSF and USDA Organic. The business is led by an experienced management team, employs 360 people and has revenues of approximately $80 million.
The consideration was based on an enterprise value of approximately $60 million (£46 million), most of which was paid in cash on completion.
Donal Murphy, Chief Executive of DCC plc, said today:
“DCC Health & Beauty Solutions provides high-quality services to leading health and beauty brand owners, specialist retailers and direct sales organisations. The acquisition of Ion significantly enhances our presence in the US market and Ion will work closely with both Elite One Source and DCC Health & Beauty Solutions’ European businesses to cross-sell the full breadth of the Group’s comprehensive offering for health & beauty brands.
The US is the world’s largest health supplements and nutritional products market. It is also an innovative, high-growth market, with a fragmented contract manufacturing base. We continue to be excited by the significant opportunities for organic and acquisitive growth in this market.”
