WELL PLUS TRADE, headquartered in Hamburg, was focused on the development, marketing and distribution of products to boost fitness and dieting. Under its own brands „Power System” and „Slim System” as well as various private label brands, WPT helped consumers achieve their individual sport and health-related goals. With many years of experience in the development of functional foods and the use of top-quality ingredients, the company offered a broad and individually optimised product range. The company was founded in 2001.
The acquisition
NEXX Capital Fund V acquired WPT in 2017 from the four previous shareholders, with reinvestments by three key persons. The sell-side M&A advisor IMAP M&A Consultants had approached NEXX early given its previous experience in the sector and with comparable asset-light business models, and ran a limited auction process. The main shareholders were looking for a buyer to support management’s envisaged growth strategy – international expansion, product portfolio diversification and the development of complementary sales structures. NEXX prevailed thanks to its early engagement, sector know-how and a differentiated offer. During the process, a strategic co-investor with promising access to the French market was successfully brought on board.
Investment Rationale
WPT operated in a strongly growing market segment underpinned by an increasing general health focus, growing fitness and sports affinity, and the rising penetration of protein-enriched products – in particular among fitness-lifestyle users (rather than bodybuilders) and in adjacent sports. The company especially benefited from the ongoing shift in delivery formats towards more convenient bars and innovative snacky-type sports food products, replacing traditional chocolate bars and addressing wider audiences (e.g. female, aging) with above-market growth. Shaped by a strong management team, WPT operated an asset-light full-service business model that enabled a wide product range while securing cost and quality leadership, establishing significant barriers to entry. Between 2013 and 2016, WPT grew at an average of 16% p.a. and became the market leader for protein-based sports nutrition products in the German mass market, with a double-digit adjusted EBITDA margin. NEXX identified potential to grow revenues through further penetration of existing retail customers (branded products), acquisition of new domestic and international private label accounts, development of new customer groups and the more intensive use of online channels. An add-on strategy and further professionalisation of the organisation were envisaged as additional levers.
Implementation of the growth concept
Together with management, the build-out of additional sales and online marketing capabilities was advanced. Key growth priorities were the internationalisation of the business, the expansion of the product line and the development of additional distribution channels. A sharpened brand positioning was intended to further increase the share of branded products in revenues. Geographical expansion within Europe was pursued mainly via new private label customers; in addition, selected add-on acquisitions were planned to drive incremental growth.
Exit
The exit was completed in September 2021 to Nimbus Investments CXLVII BV, a Dutch private equity investor.
