De­sire to live well and longer fu­els Jamieson IPO

The Hamilton Spectator - - BUSINESS - LINDA NGUYEN

TORONTO — Jamieson Well­ness is bank­ing on an ag­ing pop­u­la­tion and ris­ing dis­pos­able in­comes to help ac­cel­er­ate a five-year ex­pan­sion plan, the head of the com­pany said as its stock soared on its de­but Fri­day on the Toronto Stock Ex­change.

For nearly a cen­tury, the Toron­to­based maker of vi­ta­mins, min­er­als and other sup­ple­ments has cap­i­tal­ized on con­sumer ap­petite to live healthy — and it is count­ing on that to grow.

“There is a global health and well­ness mega­trend that is go­ing on that af­fects ev­ery­one, no mat­ter which coun­try you’re in,” pres­i­dent and CEO Mark Hor­nick said in an in­ter­view be­fore the com­pany went public.

“Peo­ple want to live longer and they want a higher qual­ity of life. They want to pre­vent health con­cerns be­fore they be­come prob­lem­atic.”

Jamieson sold $300 mil­lion worth of its shares though its ini­tial public of­fer­ing and a sec­ondary of­fer­ing priced at $15.75 per share.

The com­pany plans to use the money raised from its share of the of­fer­ing to re­pay debt and its pre­ferred share­hold­ers.

Ac­cord­ing to mar­ket re­search firm Euromon­i­tor, the Cana­dian vi­ta­min and mul­ti­vi­ta­min in­dus­try was worth $431.7 mil­lion last year.

Jamieson says it con­trols about 25 per cent of the vi­ta­min mar­ket in Canada. It also sells other prod­ucts in­clud­ing nat­u­ral sleep aids, herbal ex­tracts and nat­u­ral beauty and skin care prod­ucts.

It has a rev­enue tar­get of $390 mil­lion for this year, with ex­pec­ta­tions of $410 mil­lion in 2021, ac­cord­ing to reg­u­la­tory fil­ings.

Jamieson says in ad­di­tion to in­creas­ing its sales in Canada, where it has more than 500 prod­ucts in 10,000 stores, it is fo­cused on grow­ing its pres­ence in­ter­na­tion­ally, par­tic­u­larly in mar­kets such as Asia, Eastern Europe and the Mid­dle East.

The com­pany al­ready ex­ports to more than 40 coun­tries, with some of its old­est mar­kets be­ing Trinidad, Jor­dan and Hong Kong.

Hor­nick says the brand has “premium” ca­chet in the in­ter­na­tional mar­ket be­cause its pro­duc­tion meets strin­gent Health Canada reg­u­la­tions.

Jamieson makes about 90 per cent of its prod­ucts at three fa­cil­i­ties in Wind­sor and Toronto, and has no ex­pec­ta­tions of mov­ing its fac­to­ries over­seas. It cur­rently em­ploys about 800 peo­ple.

Ear­lier this year, Jamieson ac­quired sports nu­tri­tion com­pany Body Plus, and is plan­ning on launch­ing a line of vi­ta­min-en­hanced pro­tein pow­der next year. It bring­ing a cough and cold pre­ven­tion pill on the mar­ket in the fall.

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