The agreement will see Probi act as a supplier of probiotic supplements as well as having a hand in research efforts to identify product ideas in categories where interests overlap.
According to the partners, the agreement also provides scope for future manufacturing expansion that involves Probi's existing facilities.
“We are very enthusiastic about this partnership and see good collaboration opportunities in this structure,” says Tom Rönnlund, CEO at Probi.
“We believe there is a complementary fit between our two businesses, as Vital Holdings is focused on scientifically backed professional brands, sales to healthcare practitioners and major e-commerce marketplaces. Like Probi, they have a mindset of innovation and scientific support as key differentiators.”
Second largest shareholder
According to Probi, the deal will be financed by the firm’s cash reserves and assumes a medium to long term perspective on its stake in Vital Holdings.
As second largest shareholder, Probi holds just under 10% of shares in the company that will be reported as a financial investment in Probi’s balance sheet.
The agreement also opens up a further opportunity for Probi to form a new long-term supply agreement with Hyperbiotics, which Vital Nutrients recently acquired.
Commenting on the deal Jane Pemberton, CEO & President of Vital Holdings says, “We are excited to welcome Probi as a partner in Vital Holdings and collaborate with them across our family of science-based brands.
“We have tremendous respect for Probi’s capabilities given their long track record in probiotics and are delighted to take this step together with them.”