New York-based investment firm New Mountain Capital announced that it has reached a definitive agreement with Aurobindo Pharma to acquire Natrol and combine it with Jarrow Formulas, another New Mountain Capital portfolio company. The transaction is expected to close by January 2021, subject to customary closing conditions and regulatory approvals.
New Mountain Capital emphasizes business building and growth rather than debt, pursues long-term capital appreciation. The firm currently manages private equity, public equity, and credit funds with over US$ 28 billion in assets under management.
Headquartered in Los Angeles, CA, Natrol is a leading vitamin, minerals, and supplements brand focused on vital human health areas including sleep, mood, stress, brain health, beauty, and immunity. Founded in 1980, Natrol has grown to be the #1 natural sleep brand. Natrol is trusted by consumers globally and has an established reputation for scientific efficacy, high quality, and innovation.
“Throughout its history, Natrol has stood for the highest quality products designed to drive positive outcomes and enhance quality of life for its users,” said Andre Moura, managing director at New Mountain Capital. “We thank Aurobindo for their stewardship of Natrol over the last six years, and we look forward to working closely with the management teams at Natrol and Jarrow Formulas to build upon Natrol’s strong momentum and drive continued growth and market-leading innovation.”
“Aurobindo is committed to evaluating and concluding strategic options towards focused portfolio enhancement with the ultimate objective of enhancing stakeholder values. We are pleased to enter into an agreement to sell the Natrol business to an outstanding private equity player, who can focus additional resources to grow Natrol, its products and brands further. On behalf of the Aurobindo Group, my heartful thanks to all stakeholders including employees, who have supported in acquiring and bringing Natrol to a growth path in the past 6 years,” said N Govindarajan, managing director, Aurobindo Pharma. “Proceeds from Natrol’s divestiture will be used to reduce debt and other new strategic initiatives.”
Simpson Thacher and Bartlett acted as legal counsel to New Mountain Capital. Jefferies served as the sole financial advisor to Aurobindo, and Sullivan and Cromwell acted as legal counsel to Aurobindo.