HPH II Acquires Ultima Health Products to Drive Expansion of Sugar-Free Electrolyte Hydration Brand

On July 2, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media that WM Partners, the manager of the private equity fund HPH II Investments Master Fund, LP, announced the acquisition of Ultima Health Products, Inc., a supplier of sugar-free electrolyte hydration products. WM Partners is a private equity firm headquartered in Fort Lauderdale, USA, focusing on investments in small- and mid-cap companies within the healthcare sector. The specific terms of the transaction were not disclosed.

Ultima was founded in 1996 and is headquartered in Cortland, Ohio, USA. It was established by a passionate nutritionist and long-distance runner. Currently, the brand also caters to general health-conscious consumers, including children, the elderly, individuals with active lifestyles, and patients with diabetic ketoacidosis. Its products boast the advantages of being natural, sugar-free, and free from any artificial ingredients. Ultima sells its products through distributors, retail chains, and various e-commerce platforms, demonstrating significant growth momentum in e-commerce channels. Ultima’s products have been approved by the Autism Hope Alliance (AHA) and currently carry the AHA certification mark.

Vitamin Angels, produced by Ultima, serves children and mothers in need, particularly those living in regions classified by the World Health Organization as having moderate to severe vitamin A deficiency. Vitamin Angels provides nutritional support during the most critical periods of child development. They help promote healthy lives by providing prenatal vitamins and breastfeeding education resources to pregnant and lactating mothers, as well as vitamin A supplementation and deworming treatments to children under five years of age.

Ultima is HPH II’s first acquisition. HPH II focuses on acquiring mid-to-low-end market companies with leading brands in the health and wellness sector, and grows these companies through operational acquisitions and value-creation strategies. HPH II concentrates its investments in segments such as functional foods, natural personal care products, and natural over-the-counter (OTC) medications. Ultima fully aligns with HPH II’s investment criteria; as a privately held company, Ultima was sourced through proprietary channels, with relationships established with customers for over two years.

Jose Minski, Co-Founder of WM Partners, stated, “We are delighted to support the brand in entering its next phase of growth and creating long-term value by implementing identified operational and commercial improvements, such as further expanding distribution channels, developing new products, and pursuing strategic and complementary acquisitions.”

“Ultima Chief Operating Officer Livingston Miller stated, ‘We are delighted to partner with WM Partners, leveraging their operational expertise and capabilities to further develop our brand and company. We take pride in the achievements we have made as a small brand thus far, and we are confident that WM Partners will continue our expansion plans while ensuring we are well-prepared to serve our customers.’”

There is no financial advisor for this transaction. Akerman LLP serves as legal counsel to WM Partners, and Carter Ledyard & Milburn LLP serves as legal counsel to Ultima.

WM Partners is a middle-market private equity firm specializing in acquisition investments within the healthcare industry. Committed to generating sustainable long-term value, WM Partners acquires high-potential small and medium-sized enterprises by leveraging its operational expertise in healthcare and employing a strategic business approach that partners with experienced management teams. Headquartered in Fort Lauderdale, Florida, WM Partners invests in healthcare companies and brands dedicated to transforming consumers’ lives by helping them lead more active and healthier lifestyles.

Ultima is a sugar-free electrolyte product supplier based in Cortland, Ohio. Ultima enhances the sweetness of its products with organic stevia and monk fruit extracts (Rebaudioside A). Its products are all plant-based and derived from real fruits and vegetables. Ultima states that its products never contain unnecessary high-calorie ingredients, particularly high-fructose corn syrup.

(Compiled by Zhang Jing)