Transaction overview
HPH III Investments, LP, a private equity firm focused on health and wellness companies in the natural consumer health sector, acquired a majority stake in Prime6 Brands GmbH and its subsidiaries, including the well-known brand Primal Harvest. The deal closed on September 12, 2023, with terms undisclosed. Prime6 is recognized for its nutritional supplements and skin care products sold via digital channels such as direct-to-consumer (DTC) websites and Amazon, achieving significant sales in both the United States and Europe.
Deal structure and financing
The precise financial details of the acquisition were not disclosed, including the equity-debt split or any retained stake by Prime6's previous owners. Raymond James acted as sell-side advisor to Prime6, while Dentons provided legal counsel for WM Partners on this transaction. The company's operational strategy, led by HPH III, aims to grow and scale through an "operational buy and build" approach in natural consumer health subsectors like vitamins, minerals, supplements, functional foods, and personal care products. No lock-up terms or IPO options were mentioned as part of the deal.
Strategic context
The acquisition aligns with HPH III's strategy to invest in companies that offer innovative and holistic wellness solutions through digital platforms. Prime6's strong customer retention rates and robust online presence made it an attractive target for expansion into new markets. Co-Founder Jose Minski expressed enthusiasm about leveraging Prime6's expertise in the DTC channel, particularly in light of growing consumer trends towards self-care and preventative health measures. Meanwhile, Max Gabath, Co-Founder of Prime6, highlighted the partnership as a means to drive further value creation and scale across Europe and North America.
Regulatory path
The regulatory landscape for this acquisition was not detailed in the announcement. Given the transaction's undisclosed financial terms and cross-border nature involving companies headquartered in Florida and Germany, it is likely that antitrust authorities in both jurisdictions would have reviewed the deal. However, no specific remedies or timelines were mentioned regarding any necessary approvals from regulators like the U.S. Federal Trade Commission (FTC) or European Union's Directorate-General for Competition (DG COMP).