Catalent (CTLT) – Received Catalent Inc Report shares rose Monday after the contract drug manufacturer said it is buying Bettera, a maker of gummy nutritional supplements, for $1 billion in cash.
Bettera is backed by the Dallas investment company Highlander Partners. Catalent is the pharmaceutical technology company from Somerset, NJ.
The deal “will complement and accelerate the growth of Catalent’s global softgel and oral formulation and manufacturing businesses,” Catalent said.
Catalent recently traded at $133.40, up 3%. It rose 12% in the six months to Friday.
Gummy vitamins and supplements are all the rage right now. A report from Allied Market Research last year estimated that gummy sales will reach $9.3 billion in 2026, up from $5.7 billion in 2018, The Wall Street Journal reports.
Catalent expects the acquisition to close before the end of the year. Catalent will fund the deal with a combination of cash, existing credit facilities and, subject to market conditions, new debt financing.
Catalent earnings released Monday for the fiscal fourth quarter of 2021, ending June 30.
Revenue registered $1.19 billion, up 25%, or 22% in constant currency, from $947 million in the fourth quarter a year ago. Total organic net sales increased by 26%.
Net income was 98 cents per base share, compared to 86 cents in the fourth quarter a year ago.
Operating EBITDA was $326 million, up $60 million from $266 million in the fourth quarter a year ago.
Adjusted net income was $1.16 per share, compared to 90 cents a year earlier.