US-based Catalent has agreed to acquire Bettera Holdings, a manufacturer of consumer-preferred products for nutraceutical, functional, and botanical ingredients, for $1bn.

Bettera is a portfolio company of Highlander Partners, and is expected to advance the growth of Catalent’s softgel and oral dose formulation business. It has four production facilities in the US.

Catalent is engaged in providing development and manufacturing platforms for medicines, including biotherapeutics, cell and gene therapies and consumer health products.

With the acquisition, Catalent is enabled to expand its current consumer health technology platform with a wide range of technologies and ready-to-market product libraries.

Bettera is said to complement the company’s network of consumer health manufacturing sites across North and South America, Europe and Japan.

Catalent Softgel and Oral Technologies president Aris Gennadios said: “As the leading global innovator of softgel and oral technologies, Catalent has a strong, long-standing presence in the rapidly expanding consumer health and nutraceutical marketplace.

“This acquisition allows us to significantly accelerate the growth of our consumer health business and offer customers access to the substantial potential in gummies, soft chews, and lozenges, which are experiencing double-digit growth.

“This acquisition is a key strategic move for Catalent’s Consumer Health business, where our leadership in manufacturing technologies and formulation can offer customers more product development opportunities and add manufacturing capacity in this dynamic and fast-growing segment.”

The transaction is expected to close before the end of 2021, subject to customary terms and closing conditions.

As part of the transaction, all of Bettera’s 500 employees, along with product development, manufacturing, and packaging assets will be transitioned to Catalent.

The deal also includes production facilities located in California, Indiana, New Jersey, and Virginia, and the closing is not contingent on any financing activity.

Catalent intends to fund the acquisition using a combination of cash on hand, existing credit facilities and, depending on market conditions, new debt financing.

The company intends to file a current report on Form 8-K with the Securities and Exchange Commission with further details related to the acquisition.

Centerview Partners served as a financial advisor, and Fried, Frank, Harris, Shriver & Jacobson as legal counsel to Catalent on the transaction.