A string of high-profile and brand-extending acquisitions have lengthened the footprint of Atrium Innovations, a global developer, manufacturer and marketer of science-based nutrition products. Thanks in no small part to its larger presence across key channels in both the United States and Canada, the company is witnessing continued strong performance in 2010, following 17% growth in 2009 to revenues of $320 million.

Atrium's new assets include: Florida-based supplement manufacturer Garden of Life; Arizona-based Nutri-Health Supplements; and Trophic Canada, a supplement manufacturer and distributor to the Canadian natural & specialty retail channel. Collectively, these acquisitions expand Atrium's reach into retail and direct-to-consumer channels, well beyond its traditional sales base of healthcare practitioners. Atrium's portfolio already ran deep, of course, with a mix of properties that include Douglas Laboratories, Pure Encapsulations, Ortica and AOV — two recognized brands in Holland, and Wobenzym — a branded supplement line in Germany. At press time, Atrium struck again with a €5.5 million acquisition of Minami Nutrition, a Belgian marketer of concentrated omega-3 supplements. The company now distributes its products in 35 countries, primarily in North America and Europe.

Industry experts credit Pierre Fitzgibbon, Atrium's president and CEO, as the key architect for this growth strategy. A newcomer to nutrition, Fitzgibbon has been widely lauded for his acute sense of industry trends, and for keeping his company committed to a science-based approach. Fitzgibbon told NBJ that Atrium will continue to concentrate on applied research and clinical trials, as it looks for acquisition partners that share these values.

Fitzgibbon believes that strong science is the best approach as the industry embarks on a period of tighter regulation. “The enhanced regulatory climate,” he says, “is good news for the industry. It provides more legitimacy with consumers who question the quality and seriousness of claims.” But, he adds, compliance requirements will put an additional burden on companies and this, in turn, could prompt more consolidation.

According to observers, Fitzgibbon's background in finance and strategy brought serious credence to Atrium when he came onboard, back in 2007. “Pierre brought credibility in the financial markets that I think was especially important for Atrium to grow through acquisitions,” says Claude Proulx, a financial analyst with BMO Nesbitt Burns. “He comes to nutrition from the telecommunications industry and from time serving as the CFO of a large Canadian charter bank. His credibility will continue to be helpful as Atrium needs equity or debt financing.”

Proulx also recognizes Fitzgibbon's leadership, based in common-sense business decisions. “Good CEOs generally make good decisions,” says Proulx. “They pay reasonable prices for their acquisitions, and buy companies in good stead. Fitzgibbon is one of those CEOs.”

The man himself is more modest in characterizing his role in the company's achievements. “I brought a complementary skill set to what already existed at Atrium,” says Fitzgibbon. “I had no background in the nutrition industry, so it was equally important that the people inside the company had that knowledge. They made my job much easier.” His fresh set of eyes necessitated this “inclusive management style.” Coming from outside industry, Fitzgibbon maintains that the choice to work collegially with company management in navigating such areas as regulation and distribution was an easy one.

Fitzgibbon does admit that his financial background makes him especially results-oriented. “I prefer to have tangible goals, and that includes monetary targets,” he says. “At the same time, I can acknowledge the importance of innovation and how it does not always translate into tangible results.”

The true strengths of Atrium's acquisition strategy, according to Fitzgibbon, are its close definition and efficient implementation. The company is known for seeking strong partners with an entrepreneurial vision, and that often results in win-win deals. “It's easier to select acquisitions when you have a canvas at hand of where you want to go,” Fitzgibbon says. Quick, decisive action is another strength. “We determine if the company is a good fit,” says Fitzgibbon, “and then, once we set our mind to it and get the right price, we act fast.”

The execution of an acquisition is not the end of the road, however. Anyone can write a check, but integration proves much more difficult. “At Atrium, we preach a balanced approach to integration,” says Fitzgibbon. “While we want to maintain entrepreneurship — the DNA of the brand — we must reap all available synergies. The value creation comes from working together as a group and moving in the same direction.”

As to the future, Atrium is taking steps to globalize Wobenzym, a German brand of supplements targeting joint comfort and inflammation, as the company weathers regulatory hurdles in that host country. America, get ready: “We believe Wobenzym has lots of leg in the U.S. market,” says Fitzgibbon.