Stratum Nutrition “poised for growth” with Maxim Partners as majority shareholder
07 Jan 2022 --- Stratum Nutrition has entered into a new partnership with Maxim Partners, in a move touted to bring transparency, quality and opportunities for growth within industry.
The acquisition was finalized before the close of 2021, though financial details were not disclosed. The agreement outlines Maxim Partners acquires 100% of the shares previously owned by Novus Nutrition Brands. With a majority ownership of Stratum Nutrition, Maxim Partners will operate together with ESM Holdings, which retains the remaining shares.
“Together, Maxim Partners and Stratum Nutrition will capitalize on the strengths of both companies to expand Stratum’s product portfolio, both organically and inorganically, and to invest in manufacturing to better serve Stratum’s global customer base,” Micah Osborne, CEO at Stratum Nutrition tells NutritionInsight.
“We will focus on expanding further into dietary supplement ingredients for both humans and pets,” he adds.
The move will see both companies seek growth and transparency across the nutrition industry.
Building opportunities
The last few years have highlighted the importance of building strong supply relationships, with the company seeking opportunities to expand and invest, Osborne notes.
“Stratum has maintained a rigorous focus on product quality and strong scientific evidence. This partnership will enable increased investment in both of those categories, maintaining Stratum as a leader in the ingredient space,” Gregg Wilson, founder and managing partner at Maxim Partners, tells NutritionInsight.
“Additionally, our focus on inorganic growth will allow us to bring more high-quality ingredients under Stratum’s trusted umbrella.”
In December last year, Stratum Nutrition received pre-market approval in India for its natural eggshell membrane (NEM) product. The move was described as key in establishing the company’s place in India’s consumer market.
‘Critical factor’ for industry
According to Wilson, the nutritional ingredient industry suffers from excessive fragmentation and a lack of product transparency.
“In turn, this makes the landscape more difficult to navigate for respective customers. This partnership is designed to leverage Stratum as the platform to consolidate unique ingredients and to proliferate Stratum’s focus on transparency and sound science for the betterment of the customer experience.”
Both companies have shared strategic priorities and industry knowledge, Wilson notes. Together with Stratum’s operational expertise and Maxim’s experience in the acquisition landscape, this will position Stratum to access multiple avenues for growth in the near term.
“What we are most excited about in the partnership is that both groups are similarly focused on quality and transparency within the nutrition sector. As avid users of nutrition products ourselves, we view this as a critical factor to the future of the industry. The acquisition landscape will position Stratum to access multiple avenues for growth in the near term,” Wilson adds.
Transparency has been described as the “future of supplements” as industry adapts to consumer clean label demands. In 2021, “Transparency Triumphs” was crowned as the Top Trend by Innova Market Insights.
By Andria Kades
