Specialising in the formulation and distribution of psyllium and melatonin-based food supplements, family-owned Nathura rose to become a dominant leader in its niche vertical.
Clearwater has witnessed much of Nathura’s exciting journey, having shared a close relationship with the Italian market leader for 15 years. We worked together previously on tentative buy-side M&A, so Nathura naturally came to us for advice when it was time to sell.
The decision to seek an acquisition was initially selected when it became apparent that there was minimal room for growth in the market, with Nathura already commanding a 30% share.
The meticulous study is a hallmark of the approach, whether running calculations, developing a valuation, or nurturing precious relationships.
20 High-quality Bidders
The value of our thorough groundwork, connections and reputation was proven by the competitiveness of the auction process that followed. More than 20 high-quality potential buyers submitted substantial bids, including all the key contenders we expected.
After a shortlist had been defined, a process began to whittle the potential buyers down and identify the winner. Due to clear and significant synergies, Giuliani, a reference company for research in the gastroenterological, trichological, and dermatological spaces, emerged as the clear choice.
The relevance of the acquisition for Giuliani, and the opportunity for expansion that it presented, also meant the company was able to make the most competitive offer. Nathura’s owners were delighted that the final price exceeded the original valuation by quite some way, which can be attributed to the quality of the Clearwater team’s work and the range of buyers that made the bidding so competitive.
Following the full acquisition of Nathura, the new, consolidated Giuliani business entered new markets around the world and grew by 50% in the first three years alone. We are continuing to support Nathura’s original owners with private capital investment decisions and are now also a trusted adviser to the new entity.
Attention to Detail
Whether we are analysing financial data or listening to our clients’ perspectives, attention to detail is a factor that sets Clearwater apart from the competition. As the Nathura success story demonstrates, incredible results are achieved when relationships are truly nurtured, and thoughtful planning is carried out.
The acquisition marked a historic transaction for this evolving market and we look forward to seeing what the business can achieve next with the support of Giuliani. We continue to build on our long-running relationship with the incredible family behind Nathura’s success, and we meet on a monthly basis to share updates, ideas and news.
However, M&A is a challenging and expensive option in Nathura’s segment, and the next largest player held less than 10% of the market. The high and prohibitive expectations of these smaller players made acquisition an unattractive option, leading the owners to decide that the sale of Nathura was the best way to take the business to the next level.
Reflecting our deep knowledge of the client and leveraging our extensive relationships, we were able to lead Nathura through an extremely competitive bidding process. The transaction exceeded valuations and expectations, standing out as one of the highest multiples paid for a business in the space.
Studying and Development
The Clearwater team spent two months examining the business in detail, ensuring that every advantageous angle and capability was assessed before going to market. It is important to note that during this intensive process, we not only sought to collect all the key figures, but to gain an intimate understanding of the business itself.
After building a full picture of the company, we turned our attention to potential bidders. By leveraging existing relationships and our extensive market knowledge, we formulated a highly detailed buyers list and plan for Nathura.
Throughout the entire process, our fantastic relationship with the client was evident and both teams involved benefited from the highly collaborative dynamic. We held daily calls and provided continuous progress updates, ensuring alignment at every stage.
The Clearwater difference
