NUTRITIONAL SUPPLEMENT DEMAND RISES AMID PANDEMIC HEALTH & WELLNESS INDUSTRY UPDATE | JANUARY 2021

3 Health & Wellness Nutritional Supplement Demand Rises Amid Pandemic

TABLE OF CONTENTS KEY TAKEAWAYS

 Key Takeaways Capstone Headwaters’ Consumer & Retail Group (CRG) is pleased to share its  Industry Outlook Health & Wellness report. Through our ongoing conversations with active industry players and analysis of trends during COVID-19, we have identified  Supplements in High Demand several key takeaways below, followed by an in-depth overview of industry  M&A Volume Outperforms Prior Year dynamics and transaction activity on the following pages.  Notable Transactions  Select Transactions 1. COVID-19 has placed a heightened focus on health-conscious products as  Public Company Performance consumers have increasingly sought to boost immunity and wellness.  Public Company Data 2. Public company performance has rebounded substantially since the onset  Firm Track Record of the pandemic, with subsegment returns displaying a remarkable recovery from mid-March.

3. Consumers have migrated towards trusted brands with effective direct-to- consumer (DTC) platforms, a trend likely to remain post-pandemic.

4. M&A activity is poised for a strong year in 2021, with Q4 2020 recording the highest quarterly deal count in 2020.

5. Trading multiples of public companies have improved which bodes well for higher M&A valuations in 2021.

6. Vitamins, minerals, and supplements providers with strong brand recognition and online penetration are expected to continue to garner both strategic and buyer interest.

Lisa Tolliver Senior Director 773-791-9493 [email protected]

2 Health & Wellness | January 2021

INDUSTRY OUTLOOK

Existing consumer preferences towards nutritional supplements and functional food products have been substantially accelerated by COVID-19, evidenced by the Lisa Tolliver, Senior Director 76% year-over-year (YOY) increase in Vitamin C “Health & Wellness has been a bright supplement sales during the first half of 2020, which spot amidst the pandemic, particularly 1 amounted to $209 million, according to Nielsen. E- for those brands selling online. COVID- commerce has proven to be a critical channel for industry 19 has put health at the forefront of participants to stimulate DTC and retail sales growth amid consumer’s minds and actions. The widespread physical store closures. Leading nutritional sector is benefitting from heightened products provider, Glanbia (ISE:GL9) has continued to consumer interest that is translating invest in its e-commerce platform which was a key into strong M&A activity amongst both component of its €76.3 million capital expenditure in strategics and private equity investors. 2019. Through Q2 2020, 34% of Glanbia Performance Multiples within the sector are strong, Nutrition Product sales were through online channels, with public companies trading in the according to its earnings release.2 double digits and expected to remain strong throughout 2021.” Top public companies encountered severe headwinds during the onset of the pandemic, evidenced by the decline in EBITDA multiples in mid-March. However, valuations have recovered with multiples in the Supplements segment improving 30.2% from March 11. In addition, General Health & Wellness companies have continued to trade at premium valuations, with EBITDA multiples standing at 20.8x as of December 31.

Health & Wellness Public Company EBITDA Multiples Recover From Early Pandemic Headwinds

Supplements General Health & Wellness Food & Beverage

25x March 11: WHO declares 20.8x COVID-19 a pandemic 20x

15x 13.7x

10x

EV/EBITDA 11.2x

5x

0x Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20

3 Health & Wellness | January 2021

SUPPLEMENTS IN HIGH DEMAND

The Supplements industry has powered through COVID- provider, recorded an 8.6% increase in YOY revenue in Q2, 19 by leveraging e-commerce capabilities, which has been supported by strong volume growth in its U.S. markets, reflected in premium valuations, fueling what could be a according to its earnings release.6 In addition, new positive merger and acquisition (M&A) trend for business customers have increasingly been drawn to nutritional owners. While the pandemic has slowed personal products during the pandemic, as Herbalife has cited a consumption expenditures it has also fostered a 25% YOY increase in unique customers in the U.S. While heightened awareness for health-conscious products as demand has begun to normalize in the Vitamins and consumers have increasingly sought to boost immunity Supplements markets, sales remain elevated YOY and and overall wellness. The pandemic has facilitated a health and wellness products are forecast to continue to substantial increase in demand for vitamins, minerals, capture consumer spending post-pandemic. supplements, and other wellness solutions, which had projected to achieve a market size of $230.7 billion by The pandemic has reaffirmed consumer preferences for 2027 prior to COVID-19, according to Grand View trusted brands offering quality products. Brand Research.3 Notably, vitamin sales elevated significantly recognition plays a significant role in purchasing habits, during the onset of COVID-19 disruption, rising 44% YOY with online penetration becoming increasingly critical during the six weeks ending on April 5th, according to amidst widespread lockdown and social distancing Nutritional Outlook.4 In addition, nutritional supplements measures. However, as COVID-19 has accelerated the have also experienced a similar surge in demand and have shift to e-commerce channels, popular brands that have drastically outpaced 2019 levels. During the six weeks heavily relied on specialty stores have encountered severe ending on April 5th, nutritional supplement sales challenges. GNC, a mainstay in nutritional products, filed amounted to $435 million, surpassing 2019 full year totals for Chapter 11 bankruptcy in June following years-long of $345 million. Heightened interest in wellness products sales declines, accelerated by COVID-19 induced store is also supported by increased social media mentions for closures. Despite its e-commerce revenue increasing 25% specialty health ingredients and vitamins. Internet in Q1, same store sales (inclusive of e-commerce sales) fell searches for elderberry, a vitamin C-rich medicinal plant, 10.1% YOY as COVID-19 forced 30% of GNC’s company- have increased by 16 times compared to January of 2019, owned and franchise stores to close, according to its according to L.E.K.5 earnings release.7 The reliance on brick-and-mortar specialty stores, in conjunction with mounting debt, forced Top public players in the Health & Wellness industry have GNC into a fundamental restructuring and has showcased resilience despite supply chain and distribution underscored the importance of efficient DTC models. The challenges. Industry participants with robust e-commerce pandemic has driven the monumental shift to e- capabilities and sound supplier networks, coupled with commerce channels in the Supplements industry, with online brand recognition, have captured sustained online sales expected to grow 61.4% in 2020, compared to customer retention and sales growth. Notably, Herbalife 7.1% growth in brick-and-mortar, according to Nutrition Nutrition (NYSE:HLF), a leading nutritional products Business Journal.8 according

Global Dietary Supplements Market To Expand Google Sees Elevated Health & Wellness Searches Global Dietary Supplements Market is expected to reach Searches in Google show heightened interest for elderberry, $230.7 billion by 2027, forecasting continued consumer vitamin C, vitamin D, and Immunity Boosters, which peaked preference for health-conscious products in the early months of the pandemic

$350 100 Elderberry $300 Vitamin D 80 $230.7 Vitamin C $250 $213.3 $197.3 Immunity Booster $182.4 $200 $168.7 60 $144.2$155.9 $150 $123.3$133.3

$ in Billions $ in 40 $100 20 $50 Index Interest Search

$0 0 2019 2020 2021 2022 2023 2024 2025 2026 2027 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Source: Grand View Research Source: Google Trends 4 Health & Wellness | January 2021

M&A VOLUME OUTPERFORMS PRIOR YEAR

Health & Wellness M&A activity remained robust through M&A Transaction Volume Rises in Q4 2020, highlighting the sustained buyer appetite for well- performing brands with strong customer retention. Across 2019 2020 the broader M&A market, many industries experienced drastic slowdowns in Q2 deal count, however, the Health 60 M&A volume outpaced 2019 quarterly levels, & Wellness industry maintained steady volume except for a modest YOY decline in Q2. Q4 throughout the pandemic’s disruption. Total deal volume 50 registered the highest deal count in 2020, creating amounted to 102 transactions announced or completed, optimism for a healthy M&A environment in 2021 40 slightly above 2019 levels of 95 deals. Strategic buyers 28 30 comprised the majority of transactions, with public 30 27 25 24 23 companies in particular accounting for 54% of deals as 19 21 they deployed aggressive inorganic growth strategies. 20

Notably, Novozymes (CPSE:NZYM B) acquired Microbiome Number of Transactions of Number Labs, a leading provider of probiotic and microbiome 10 solutions in the Consumer Health industry for an 0 enterprise value of $256.8 million in December. The acquisition provides Novozymes with an entry point into Q1 Q2 Q3 Q4 the North American Human Probiotics market, incorporating it into its OneHealth platform.9 Source: Capital IQ, PitchBook, FactSet, and Capstone Research

The Vitamins, Minerals, and Supplements subsector has garnered elevated buyer interest in Q4 from both strategic and private equity players. Notably, Unilever (LSE:UNLV) acquired SmartyPants Vitamins, a provider of multifunctional supplements absent of artificial favors, sweeteners or preservatives (November, undisclosed). The acquisition highlights the heightened interest among public companies to bolster their vitamins and supplements offerings as consumers grow increasingly health conscious. Private equity firms (21% of total deal volume) have also continued to target the Vitamins, Minerals, & Supplements sector. In October, New Mountain Capital announced its acquisition of premier vitamins, minerals, and supplements brand, Natrol for an enterprise value of $550 million. New Mountain Capital plans to combine Natrol with its portfolio company Jarrow Formulas (acquired in August for an undisclosed sum), a leading formulator and manufacturer of probiotics, vitamins, minerals, and supplements.10 As consumer activities have rapidly shifted to digital settings due to the pandemic, the intersection between online experiences and nutritional products have been amplified. Robust e-commerce capabilities have been paramount, with digitally native companies in high demand. In addition, digital fitness providers have utilized M&A to expand their offerings in the Nutrition segment to bolster customer engagement and operational synergies. In December, digital fitness and nutrition platform Openfit acquired sports nutrition provider, Ladder (undisclosed). Ladder’s offerings will enhance Openfit’s on-demand fitness platform by adding a collection of premium supplement offerings.

Lisa Tolliver, Senior Director “M&A activity in the Health & Wellness sector, particularly the Vitamins & Minerals segment, finished the year strong. The positive outlook for the sector is attracting private equity investors who are developing theses around the sector, several of which made platform investments in 2020 and are actively looking for add-on opportunities for 2021.”

5 Health & Wellness | January 2021

NOTABLE TRANSACTIONS

Several notable transactions have been announced or completed in the industry in 2020. Select transactions are outlined below, followed by a more comprehensive list on the following page.

Brand Holdings, LLC acquires Dr. Emil Nutrition (July 2020, Undisclosed)

Brand Holdings, a partnership between private equity firms Kidd & Company and T-street Capital, has acquired leading e-commerce nutritional products provider Dr. Emil Nutrition. Terms of the transaction and were not disclosed. Dr. Emil offers health and wellness supplements and sports nutrition products manufactured in an FDA-registered and good manufacturing practice (GMP) laboratory. Dr. Emil employs a science-backed approach, formulating products with clinically proven ingredients.

Brand Holdings focuses on acquiring DTC e-commerce companies with a specialization in the Health & Acquires Wellness, Sports Nutrition, Beauty, and Functional Foods industries. Brand Holdings plans to enhance the Dr. Emil product line and grow its presence in the Nutritional Supplements market. “The market for nutritional supplements is undergoing a momentous shift as e-commerce continues to play an increasingly critical role in consumer purchasing behavior. Dr. Emil has demonstrated proven success with online sales and is well positioned to benefit from these industry trends,” commented Gerry DeBiasi, partner at Kidd & Company in a press release.11

Nestlé Health Sciences S.A. acquires Vital Proteins, LLC (June 2020, Undisclosed)

Nestlé Health Sciences, a subsidiary of Nestlé (SWX:NESN) has agreed to acquire leading collagen brand and wellness platform Vital Proteins. Terms of the transaction were not disclosed. Vital Proteins offers collagen powders, beverages, capsules, and bars across North America and Europe. Its products are sold in approximately 35,000 retail locations including Whole Foods, Costco, Target, Walgreens, and Kroger. In addition, it sells its products through its e-commerce site, offering one-time and subscription Acquires purchase options.

“Joining NHSc allows us to take Vital Proteins to the next level by leveraging resources, scale and capabilities, and moving toward a future with an expanded offering of science-backed products,” commented Kurt Seidensticker, Founder and CEO of Vital Proteins in a press release.12 The acquisition enhances Nestle’s presence in the Functional Nutrition market, adding a robust portfolio of premium products. It also complements Nestle’s existing vitamin, mineral supplement, and wellness brands including Atrium Innovations, Garden of Life, Pure Encapsulations, and Persona.

LoveKind Inc. acquires ELXR Juicelab (June 2020, Undisclosed)

LoveKind has acquired ELXR Juicelab, a cold-pressed juice and superfood café, for an undisclosed sum. Toronto-based ELXR offers cold-pressed juices, protein-dense and plant-based milks, tonic waters, booster shots, wellness lattes, smoothies, and cleanse packages. It currently operates five superfood cafés and an online platform for home delivery. Acquires Lovekind is a hospitality and creative brands incubator with a product portfolio including Calii Love and Love Child Social House. ELXR will leverage Lovekind’s geographic reach and capital resources to expand into new markets and diversify and enhance its product offerings. In addition, ELXR plans to launch several new retail locations in Canada over the next two years and develop a state-of-the-art production facility in the Greater Toronto Area. The acquisition also significantly bolster’s Lovekinds portfolio in the Food and Beverage market, especially as consumers increasingly focus on health and wellness products. 6 Health & Wellness | January 2021

SELECT TRANSACTIONS

Enterprise EV / LTM Date Target Acquirer Target Business Description Value (mm) Revenue EBITDA Novozymes 12/18/20 Microbiome Labs Manufactures nutritional supplements. $256.8 - - (CPSE:NZYM B)

Giddy Up Energy R-Three 12/15/20 Provides nutritional and energy products. - - - Products (OTCPK:RRRT)

12/07/20 Conscious Cultures Trolley Venture Produces and sells organic kombucha. - - -

USANA Health Offers protein and energy products including Built bar, 12/03/20 Built Brands - - - (NYSE:USNA) BuiltGO, Built boost, and Built broth products.

Provides sports nutrition products including high- 12/02/20 Ladder Openfit performance, NSF Certified for Sport supplements. - - -

Puree Artisan Offers cold-pressed juices through online home 11/30/20 Jrink - - - Juice Bar delivery and provides subscription services.

SmartyPants Provides gummy vitamins that include multivitamin, 11/25/20 Unilever (LSE:ULVR) - - - Vitamins omega-3, and vitamin D supplements.

Offers an online delivery platform for nutritionist- 11/23/20 Factor75 Hello Fresh (XTRA:HFG)designed meals focused on health and wellness. $277.0 12.4x -

Manufactures and distributes healthy snacks 11/15/20 KIND Mars and fruit and nut bars. - - -

Global 11/12/20 Karex Global Provides sexual health products. $51.9 13.5x - Protection

Whole Earth Brands Manufactures zero sugar, keto-friendly, and plant- 11/10/20 Swerve $80.0 - - (:FREE) based sweeteners and baking mixes.

Umbra Develops health and wellness products including 11/03/20 Dreaming Company - - - (OTCPK:UCIX) sleeping supplements.

10/30/20 Freshly Nestlé (SWX:NESN) Provides freshly prepared meals online. - - -

New Mountain 10/25/20 Natrol Offers vitamins, minerals, and supplements. $550.0 - - Capital

Provides a direct-to-consumer nutrition and weight 10/18/20 Nutrisystem Kainos Capital management platform. $493.7 0.7x 5.3x

Naturelo Premium Arcadia Consumer 10/15/20 Manufactures vitamins, minerals, and supplements. - - - Supplements Healthcare

Rosewood Private Develops, formulates, and manufactures functional 10/01/20 Living Ecology - - - Investments food and nutrition supplements.

09/18/20 World Waters Caribé Juice Produces cold-pressed watermelon juices. - - -

09/14/20 HiLo Nutrition Highlander Partners Manufactures pre-workout nutrition gummies. - - -

09/08/20 KetoSports Limitless Venture Provides energy and health supplementation products. - - -

09/02/20 Noho Health Bayer (XTRA:BAYN) Produces and supplies vitamins and supplements. - - -

Offers nutritional supplements for men, women, 08/30/20 Jarrow Formulas New Mountain Capital infants, toddlers, and children. - - -

08/24/20 Truweo Mohawk Group Provides health and wellness products online. $16.4 - -

Source: Capital IQ, PitchBook, FactSet, and Capstone Research 7 Health & Wellness | January 2021

PUBLIC COMPANY PERFORMANCE

YEAR-OVER-YEAR 2019 2020 LTM EBITDA 50.0x MULTIPLES 40.0x 34.6x

Public players in the 30.0x Supplements industry have 22.7x 22.6x 17.6x recorded mixed year-over- 20.0x 17.7x 11.9x 12.5x year EBITDA multiples 11.0x 10.6x 12.0x 12.3x 9.5x 9.3x 9.5x performance, with 10.0x Blackmores, Glanbia, Jamieson, and Medifast 0.0x experiencing gains Blackmores Glanbia Herbalife Jamieson Medifast TCI Co. WW Wellness International

Source: Capital IQ as of December 31, 2020

YEAR-OVER-YEAR 2019 2020

LTM EBITDA 35.0% MARGIN 30.0% 25.7% 26.7% 24.0% 24.0% 25.0% 19.5% 19.2% EBITDA margins have 20.0% 15.2% 14.5% 14.6% 13.8% remained relatively steady 15.0% 11.6% 9.7% in 2020 compared to the 8.6% 8.8% prior year, although 10.0% Blackmores, Glanbia, and 5.0% Herbalife experienced 0.0% modest declines Blackmores Glanbia Herbalife Jamieson Medifast TCI Co. WW Wellness International

Source: Capital IQ as of December 31, 2020

LTM REVENUE 30.0% GROWTH 25.0% 22.0% 20.0% 14.6% 13.4% 15.0% 10.5% 10.0% Medifast and Glanbia 5.0% have led other public 0.0% players in last twelve- -5.0% -1.7% -3.6% month revenue growth -10.0% through 2020 at 22% -15.0% and 14.6%, respectively -20.0% -15.3% Blackmores Glanbia Herbalife Jamieson Medifast TCI Co. WW Wellness International

Source: Capital IQ as of December 31, 2020

8 Health & Wellness | January 2021

PUBLIC COMPANY TRADING & OPERATING DATA: SUPPLEMENTS

Price % 52 Wk Market Enterprise LTM EV / LTM Company 12/31/20 High Cap Value Revenue EBITDA Margin Revenue EBITDA Blackmores Limited $57.84 78.5% $1,119.1 $1,170.6 $394.8 $33.9 8.6% 3.0x 34.6x

Glanbia plc $12.70 89.8% $3,727.7 $4,679.7 $4,445.2 $392.7 8.8% 1.1x 11.9x

Herbalife Nutrition Ltd. $48.05 90.8% $5,843.7 $7,443.0 $5,351.4 $780.5 14.6% 1.4x 9.5x

Jamieson Wellness Inc. $28.36 78.4% $1,130.3 $1,274.8 $290.1 $56.5 19.5% 4.4x 22.6x

Medifast, Inc. $196.34 94.1% $2,300.7 $2,142.9 $840.6 $122.0 14.5% 2.5x 17.6x

TCI Co., Ltd. $7.16 60.4% $834.7 $727.6 $293.5 $78.5 26.7% 2.5x 9.3x

WW International, Inc. $24.40 51.7% $1,661.5 $3,161.4 $1,387.3 $333.1 24.0% 2.3x 9.5x

Mean 16.7% 2.4x 16.4x

EV = enterprise value; LTM = last twelve months Median 14.6% 2.5x 11.9x $ in millions, except per share data NM = Not Meaningful Harmonic Mean 14.1% 2.0x 13.2x

PUBLIC COMPANY TRADING & OPERATING DATA: GENERAL HEALTH & WELLNESS

Price % 52 Wk Market Enterprise LTM EV / LTM Company 12/31/20 High Cap Value Revenue EBITDA Margin Revenue EBITDA Abbott Laboratories $109.49 95.1% $187,600.2 $201,641.2 $32,221.0 $7,823.0 24.3% NM 25.8x

By-health Co., Ltd. $3.70 87.7% $5,848.4 $5,401.1 $870.8 $299.9 34.4% NM 18.0x

Church & Dwight Co., Inc. $87.23 88.1% $21,672.3 $23,102.2 $4,744.7 $1,145.9 24.2% 4.9x 20.2x

Colgate-Palmolive Company $85.51 99.0% $73,296.5 $79,887.5 $16,162.0 $4,342.0 26.9% 4.9x 18.4x

Hypera S.A. $6.63 80.0% $4,176.2 $4,313.5 $691.1 $127.1 18.4% NM 33.9x

Nature's Sunshine Products, Inc. $14.95 98.4% $293.9 $241.3 $375.2 $40.8 10.9% 0.6x 5.9x

Pharmanutra S.p.A. $46.20 92.2% $445.3 $428.2 $68.2 $18.6 27.2% NM 23.1x

Reckitt Benckiser Group plc $89.32 81.6% $63,599.2 $77,649.5 $16,736.4 $4,997.3 29.9% 4.6x 15.5x

USANA Health Sciences, Inc. $77.10 83.6% $1,622.0 $1,362.9 $1,095.4 $192.7 17.6% 1.2x 7.1x

Zydus Wellness Limited $27.23 98.2% $1,732.8 $1,724.6 $231.2 $39.4 17.0% NM NM

Mean 23.1% 3.3x 18.7x

Median 24.2% 4.6x 18.4x

Harmonic Mean 20.8% 1.7x 13.9x

Source: Capital IQ as of December 31, 2020

9 Health & Wellness | January 2021

PUBLIC COMPANY TRADING & OPERATING DATA: FOOD & BEVERAGE

Price % 52 Wk Market Enterprise LTM EV / LTM Company 12/31/20 High Cap Value Revenue EBITDA Margin Revenue EBITDA Danone S.A. $65.76 71.6% $42,704.2 $58,211.2 $27,940.6 $5,641.5 20.2% 2.1x 10.3x

General Mills, Inc. $58.80 88.9% $35,952.5 $48,224.4 $18,286.7 $4,101.5 22.4% 2.6x 11.8x

The Hain Celestial Group, Inc. $40.15 98.8% $4,040.6 $4,398.7 $2,070.5 $228.8 11.1% 2.1x 19.2x

Kerry Group plc $144.95 93.8% $25,613.3 $28,293.3 $7,974.8 $1,129.6 14.2% 3.5x 25.0x

Mondelez International, Inc. $58.47 97.5% $83,621.6 $101,708.6 $26,196.0 $6,485.0 24.8% 3.9x 15.7x

Post Holdings, Inc. $101.01 89.9% $6,654.5 $13,112.5 $5,698.7 $1,079.7 18.9% 2.3x 12.1x

The Simply Good Foods Company $31.36 99.6% $3,001.8 $3,530.2 $816.6 $152.4 18.7% 4.3x 23.2x

Mean 18.6% 3.0x 16.8x

Median 18.9% 2.6x 15.7x

Harmonic Mean 17.4% 2.8x 15.1x

Health & Wellness 2020 Total Return

Supplements General Health & Wellness Food & Beverage

40% March 11: WHO declares 30% COVID-19 a pandemic +27.5%

20%

10% +2.4%

0% +1.5% -10%

-20%

Total Return Percentage Return Total -30%

-40%

-50%

-60% Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20

Source: Capital IQ and FactSet as of December 31, 2020

10 Health & Wellness | January 2021

HEALTH & WELLNESS REPORT CONTRIBUTORS

Lisa Tolliver Senior Director [email protected] | 773-791-9493

Lisa has 20 years of experience in the investment banking industry, primarily focused on advising middle market private business owners in liquidity related transactions. As a Senior Director in Capstone Headwaters’ Consumer practice, she works closely with clients to advise and execute domestic and cross-border M&A transactions, recapitalizations and capital raises. Lisa has deep M&A expertise and knowledge of businesses in the consumer and e-commerce sector, particularly related to those selling via direct-to-consumer, Amazon, mass and OTC channels.

Prior to Capstone, Lisa worked in the Capital Strategies Group at Morgan Stanley Smith Barney and also spent 10 years working for the middle market investment banking arm of Citigroup, where she was involved in the evaluation, marketing and closing of numerous transactions involving private businesses and corporate divestitures. Lisa received her BA on academic scholarship from Illinois State University and is a Series 7 and 63 Registered Securities Representative.

Brianna Conway Associate [email protected] | 847-849-0913

Brianna is an Associate in the firm’s Chicago office, working closely with private business owners to advise and execute mergers, acquisitions and strategic capital raises. Prior to joining Capstone Headwaters, Brianna was an Analyst at PwC Corporate Finance on their M&A team where she focused on healthcare provider and services sell-side transactions. Brianna graduated with honors from Indiana University’s Kelley School of Business with a major in Business Economics and Public Policy. She holds her Series 7, 63 and 79 licenses.

Connor McLeod Research Associate [email protected] | 617-619-3319

Connor is a Research Associate at Capstone Headwaters primarily specializing in Building Products & Construction Services, Healthcare, Business Services, and Cybersecurity. Prior to joining Capstone Headwaters, Connor was a specialist with the Investor Services team at BlackRock where he worked with mutual funds, closed end funds, and exchange traded funds and communicated fund performance, relevant market dynamics, and facilitated trades for shareholders, financial advisors, and institutional clients. Connor holds a BA in Economics from Bates College and is a Series 7 Registered Securities Representative.

2020 2020 2019 2019 2019

MIDDLE MARKET US MIDDLE MARKET INVESTMENT BANKING FIRM INVESTMENT BANKING FIRM INVESTMENT BANKING FIRM INVESTMENT BANK INVESTMENT BANK OF THE YEAR OF THE YEAR OF THE YEAR OF THE YEAR OF THE YEAR

INTERNATIONAL AWARDS TURNAROUND AWARDS

11 Health & Wellness | January 2021

FIRM TRACK RECORD

Capstone Headwaters professionals have represented clients across the Consumer Products & Services industry. This focus allows Capstone Headwaters to provide Health, Wellness and Fitness clients with real-time transaction feedback and immediate access to key decision makers among the industry’s most active acquirers and investors. A sampling of Capstone Headwaters' closed transactions is shown below:

CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

Corporate Sale Corporate Sale Corporate Sale Corporate Sale

E-commerce Provider of E-commerce Provider of Branded Fitness & Branded Essential Vitamins & Supplements Sleep Products Nutritional Supplements Oils Company

CONFIDENTIAL

Corporate Sale has partnered with has been acquired by has been acquired by

Branded Organic Coconut Amino Products Company

has been acquired by has been acquired by has been acquired by has been acquired by

a portfolio company of

12 Health & Wellness | January 2021

CITATIONS

1. USA Today, “Vitamin C for COVID-19: sales of antioxidant surge amid pandemic,” https://www.usatoday.com/story/money/2020/07/21/coronavirus-vitamin-c-demand-surged-during-pandemic/5403847002/, accessed August 18, 2020. 2. Glanbia, “Glanbia plc 2020 Half Year,” https://www.glanbia.com/investors/results-reports-presentations/results-releases/2020, accessed August 14, 2020. 3. Grand View Research, “Dietary Supplements Market Worth $230.7 Billion | CAGR 8.2%,” https://www.grandviewresearch.com/press- release/global-dietary-supplements-market, accessed August 14, 2020. 4. Nutritional Outlook, “Peak dietary supplement sales leveling off during COVID-19 pandemic, but growth still remains strong over last year, market researchers report during webcast,” https://www.nutritionaloutlook.com/view/peak-dietary-supplement-sales-leveling- during-covid-19-pandemic-growth-still-remains-strong, accessed August 13, 2020. 5. L.E.K., “Impact of COVID-19 pm Vitamins, Minerals and Supplements,” https://www.lek.com/insights/impact-covid-19-vitamins- minerals-and-supplements, accessed August 13, 2020. 6. Herbalife Nutrition, “Herbalife Nutrition Reports Record-breaking Quarterly Net Sales,” https://ir.herbalife.com/financial-information, accessed August 14, 2020. 7. GNC, “GNC Holdings Inc. Reports First Quarter 2020 Results,” https://gnc.gcs-web.com/news-releases/news-release-details/gnc- holdings-inc-reports-first-quarter-2020-results, accessed August 13, 2020. 8. Globe Newswire, “NBJ 2020 Supplement Business Report Predicts Supplement Sales Growth Will Spike Above 12% This Year Driven by Covid-19,” https://www.globenewswire.com/news-release/2020/07/13/2061357/0/en/NBJ-2020-Supplement-Business-Report- Predicts-Supplement-Sales-Growth-Will-Spike-Above-12-This-Year-Driven-by-Covid-19.html, accessed August 12, 2020. 9. Novozymes, “Novozymes acquires Microbiome Labs and adds a strong position in the North American probiotics market,” https://www.novozymes.com/en/news/news-archive/2020/12/novozymes-acquires-microbiome-labs, accessed January 4, 2021. 10. Business Wire, “New Mountain Completes Acquisition of Natrol,” https://www.businesswire.com/news/home/20201130005958/en/New-Mountain-Completes-Acquisition-of-Natrol, accessed January 4, 2021. 11. PR Newswire, “Kidd & Company and T-street Capital Create Direct-to-Consumer E-Commerce Strategy - First Acquisition is a Leading Health & Wellness Company,” https://www.prnewswire.com/news-releases/kidd--company-and-t-street-capital-partner-to- create-direct-to-consumer-e-commerce-strategy--first-acquisition-is-a-leading-health--wellness-company-301088825.html, accessed August 13, 2020. 12. Nestle, “Nestlé Health Science agrees to acquire majority stake in Vital Proteins,” https://www.nestle.com/media/pressreleases/allpressreleases/nestle-health-science-to-acquire-majority-stake-vital-proteins, accessed August 12, 2020.

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