Vitamin Well Secures $2.2 Billion in Debt Financing for EMPWR Acquisition

Swedish beverage maker Vitamin Well AB (STO:VITW) has successfully raised approximately $2.2 billion in a cross-currency loan offering to fund its acquisition of EMPWR Nutrition Group, according to a Bloomberg report citing a person familiar with the transaction.

Financing Details

The financing package was structured across multiple currencies to tap into different investor bases. The deal priced at the tight end of initial guidance, indicating strong demand from lenders.

• A U.S. dollar-denominated tranche of $1 billion.
• A euro-denominated tranche of €890 million (approximately $1 billion).
• A smaller tranche of 1.55 billion Swedish kronor (approximately $160 million).

The dollar and euro loans were both priced at 3.5 percentage points over their respective benchmark rates. The U.S. dollar tranche was issued at 99 cents on the dollar, while the euro portion priced at 99.5 cents.

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Market Impact and Context

The proceeds from the debt issuance are earmarked specifically for Vitamin Well's purchase of EMPWR Nutrition Group, a move that expands the beverage company's portfolio into the popular protein-bar market. The successful placement of a large, multi-currency loan for M&A purposes suggests healthy investor appetite in the corporate credit markets.

A syndicate of banks, including Barclays Plc (LON:BARC), Citigroup Inc. (NYSE:C), and UBS Group AG (NYSE:UBS), managed the transaction, according to the report. The ability to secure favorable pricing points to lender confidence in the combined entity's future cash flows and strategic direction.