An investor in businesses that specialise in food-based health supplements and vitamins has bought its third company in two years. NeutraHealth has acquired Brunel Healthcare, a supplier of vitamins and supplements, for an initial £4 million in cash.

An investor in businesses that specialise in food-based health supplements and vitamins has bought its third company in two years. NeutraHealth has acquired Brunel Healthcare, a supplier of vitamins and supplements, for an initial £4 million in cash.

The deal, which was funded through debt provided by its existing banker KBC Bank, includes an earn-out worth up to £1.9 million if agreed performance targets are achieved.

This acquisition provides NeutraHealth’s products with access to a retail distribution network and follows its £16.1 million acquisition of BioCare in August 2005 and the takeover of Nutrigold in February last year.

Following the completion of the deal, Brunel’s founding shareholder and director Ron Stagg and fellow shareholder and director Peter Hodgkiss remain with the business.

The acquirer was advised by law firm Pinsent Masons, led by partner Tom Leman, with Lyons Davidson assisting the vendors.

Bristol-based Brunel distributes its products, which include over the counter medicines, to retailers such as Tesco, Holland & Barrett, Superdrug and Waitrose.

Brunel’s sales for the year ending December 2006 were £14 million, generating EBITDA of £730,000, pre-exceptional costs.