DCC Health & Beauty Solutions has acquired Amerilab Technologies, a specialist provider of contract manufacturing and related services in effervescent nutritional products, based near Minneapolis, in the US. The acquisition of Amerilab is DCC Health & Beauty Solutions’ third acquisition in the US market, following the acquisition of Ion Labs in November 2019 and Elite One Source in February 2018. It is a further significant step in the execution of the strategy to build a business of scale in the world’s largest health supplements and nutritional products market.
In recent years Amerilab has invested in high-speed, automated equipment, enhancing its operational efficiency and increasing manufacturing capacity. Amerilab’s customer base consists of high-quality consumer healthcare companies, specialty brand owners and direct sales organisations. Effervescents are a high growth product segment within the US nutritional market, with attractive demographic characteristics and environmental credentials. Amerilab’s complementary effervescent capability will create opportunities for cross-selling and other synergies with DCC Health & Beauty Solutions.
The business, which employs 125 people and has revenues of approximately $68 million, will continue to be led by its experienced management team. DCC is acquiring Amerilab for a consideration of approximately $85 million (£72 million). We expect the business to make high returns in line with our existing Health & Beauty business within two years.
Donal Murphy, Chief Executive of DCC plc, said today:
“DCC Health & Beauty Solutions provides high-quality services to leading health and beauty brand owners and direct sales organisations. Amerilab will work closely with Ion, Elite One Source and our businesses in Europe to cross-sell the full breadth of DCC Health & Beauty Solutions’ comprehensive service offering.
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 are excited by the significant opportunities ahead.
In just two years, DCC has built a substantial presence in North America across our three divisions. We now have 1,800 people in North America and approximately 18% of our capital employed.”