Probiotics maker Seed Health explores $1 billion sale, sources say
By Abigail Summerville and Anirban Sen
(Reuters) - The owners of Seed Health, one of the few profitable U.S. biotechnology startups, are exploring a sale of the probiotics maker that could value it at more than $1 billion, according to people familiar with the matter.
Seed, which is owned by its founders and co-chief executives Ara Katz and Raja Dhir, as well as venture capital investors, is soliciting acquisition offers with advice from investment bank Centerview, the sources said.
The company expects to generate around $200 million in revenue in 2024, up from about $140 million last year, the sources added, requesting anonymity because the matter is confidential.
Spokespeople for Seed Health and Centerview declined to comment.
Seed is known for its flagship two-in-one DS-01 capsules that support gut, dermatological, cardiovascular and nutritional health. Last month the company launched a vaginal synbiotic, VS-01, to promote the health of the vaginal microbiome.
The microbiome is the collection of microorganisms, like bacteria and viruses, that live in a body or environment.
The Venice, California-based company sells directly to consumers and has both adult and children's supplements. It uses clinical trials to validate its formulas.
Katz and Dhir started the company in 2015 and are the largest shareholders. Investment firm The Craftory led a private financing round in Seed in 2021.
Large consumer health and vitamins companies have snapped up nutritional supplement makers in recent years. Last year, Pharmavite bought women's health company Bonafide, which also has vaginal microbiome-focused products, for $425 million. Also last year, Sanofi acquired vitamins company Qunol for an undisclosed amount.
(Reporting by Abigail Summerville and Anirban Sen in New York; Editing by Josie Kao)
