Vitabiotics May Be Sold for £1 Billion: Lupin in Race

Indian pharmaceutical firm Lupin, along with private equity firms TPG Capital and EQT, is reportedly in talks to acquire the UK’s Vitabiotics, a supplements and nutraceuticals business owned by the Lalvani family. The deal could value Vitabiotics close to £1 billion (roughly ₹11,800 crore). The acquisition is still in an early stage. Could this deal reshape the global presence of Indian pharma players and open new health-supplement growth avenues?

What Is Vitabiotics, And Why Is It Attracting Interest Now?

Vitabiotics is a popular British nutraceutical and nutritional firm. It markets a broad assortment of health supplements and vitamins under its popular brands, and markets in Europe, Asia, and more.

The business has recorded an EBITDA of approximately £70 million over the past full year and generated sales of roughly £196 million in 2023. Earlier this year, the sale process was put on hold, but re-emerged with strong passion in late 2025.

Global demand for vitamins, supplements, and wellness-oriented products has been rising over the past decade, driven by ageing populations, increasing health awareness, and shifts in lifestyle. Vitabiotics, under its well-known brands, has built distribution across many countries, giving the acquirer access to established export markets, regulatory approvals, and a mature product-distribution network.

For Lupin, this means access beyond generics and traditional pharma into consumer wellness, a high-margin segment. In the case of the players in the private equity market, Vitabiotics usually has a promising offer because of its stable cash flow and worldwide presence.

What the Acquisition Could Deliver and What to Watch

Lupin and its PE backers would benefit in a number of ways from an acquisition of Vitabiotics. To begin with, it provides the company with a predictable revenue generator that does not depend on regulated generics or pharma, thereby diversifying the risk. The nutraceutical industry is less prone to regulatory slowdowns and patent expiries, and is more consumer-demand-driven, distribution-based, and brand-driven.

Second, leveraging Vitabiotics’ strong European and global reach, Lupin could retool its global supply or expand distribution of Indian-made products to international markets. This could push up export volumes and augment the global footprint.

Third, with growing demand for wellness and supplements in India, Vitabiotics’ India arm (Meyer Vitabiotics) could see expansion. The Indian nutraceutical market is expanding rapidly; the presence of an integrated supply chain and a global brand can give Lupin a head start.

Investors should monitor key variables: the final deal valuation and purchase structure, the performance of Vitabiotics post-acquisition (EBITDA margin, revenue growth, geographic mix), how Lupin integrates the business structurally, and whether further capital expenditure or working capital lock-in is needed.

What Are the Risks and Broader Sector Implications?

The acquisition is not without risks. Valuation looks steep, with a postulated EV of £1 billion and EBITDA of £70 million, the implied EV/EBITDA ratio is around 14.3×, which is usually at the higher end for consumer health businesses.

Supplements and wellness-product markets are competitive. Distribution and brand strength are important. It could dent margins by maintaining market share, adhering to multiple jurisdictions through regulatory compliance, and applying pressure through prices in international markets.

To Lupin and its shareholders, managing the two types of businesses, a consumer-health business and more established pharma operations, can be complex. The differences in the business cycles, regulatory frameworks, and models of sales (B2C over-the-counter products in the open market versus B2B prescription and generic prescription products) require a cohesive, coordinated approach.

Sector-wise, once the transaction is confirmed, it will highlight the growing convergence between pharma and wellness companies. Other Indian firms may pursue similar global acquisitions, strengthening nutraceuticals as an emerging sub-segment. However, long-term success will hinge on global demand, regulatory developments, and the ability to compete with established players.

Conclusion

The next few weeks will prove to be critical. According to sources, the discussions are only in their early stage. Important milestones to observe: Will this potential acquisition become a transformative move for Lupin or just another missed chance in the global nutraceutical race?

References

The Economic Times
ION Analytics
ION Analytics
The Economic Times