Brabners Deal Advisory supports Chester Medical on acquisition of Power Health Products

Our specialist Deal Advisory team supported Wirral-based pharmaceutical packaging business Chester Medical on its acquisition of vitamin and health food manufacturer Power Health Products.  

Founded in 1965, Chester Medical has served the healthcare sector for more than 60 years. From its sites in Bromborough and Deeside, it provides printed packaging, packing and assembly services to pharmaceutical, medical device, diagnostics, nutraceutical and veterinary businesses across the UK.  

We’ve worked with Chester Medical for several years. So, when its team set out to acquire a nutraceutical manufacturer that would complement its existing operations, we were asked to identify and approach suitable businesses and advise on the transaction.  

Power Health is a family-owned producer of health food supplements, sports nutrition and natural hair and skincare products. Founded in 1972 and based in Pocklington, East Yorkshire, it employs around 80 people and supplies health food shops and pharmacies nationwide. Its products are also sold in more than 50 countries.  

The acquisition combines Power Health’s product development and manufacturing expertise with Chester Medical’s printed packaging and contract-packing capabilities. Together, the businesses will provide a broader, end-to-end service for customers in the growing nutraceuticals market.  

Both businesses will continue to trade under their existing names and maintain their current operations following completion.  

Identifying the right acquisition target  

Our involvement began in 2022 when we carried out detailed market research to identify businesses that could support Chester Medical’s growth strategy.  

We considered ten potential targets, with Power Health emerging as the preferred business. Its manufacturing capabilities, established product range and experience in the health supplements market made it a strong strategic fit for Chester Medical.  

Our Deal Advisory team, led by Principal Paula McGrath, supported Chester Medical throughout the process. This included identifying and approaching the target, negotiating the transaction and helping to develop its structure.  

Our tenacity ensured that the deal progressed against a backdrop of significant external change. Market disruption around Brexit and COVID-19 — together with heightened demand for vitamins and health supplements — had contributed to fluctuating valuations across the sector.   

Throughout this extended period, we worked closely with Chester Medical and maintained regular contact with Power Health’s adviser, RSM UK. By keeping the opportunity and its commercial structure under review, the team helped to preserve momentum and enabled the parties to return to the table at the right time. A deal structure was ultimately agreed that met both sides’ objectives and supported their long-term growth.  

Quotes 

Paula McGrath, Principal and Head of Deal Advisory, said: “We guide clients to do the right deal — not just any deal — and this transaction is a great example of that principle. While Power Health stood out early as the right strategic fit, completing the acquisition required patience, persistence and a structure that worked for both sides.  

Our longstanding relationship with Chester Medical and close contact with RSM aided this process immensely. It has been a pleasure to help the business take this important step in its growth and we look forward to watching it continue to develop under this new structure.”  

David Patterson, Managing Director of Chester Medical, said: “This acquisition is a major milestone for Chester Medical. It enhances our offering, creates new opportunities for collaboration and growth and strengthens our ability to support customers at every stage of their journey. There’s an excellent cultural and operational fit between the two companies and we’re excited to see what we can achieve together."  

Talk to us  

As the only UK law firm with a dedicated Deal Advisory team, we guide businesses and management teams through a range of complex, multi-million-pound corporate transactions, including management buy-outs and buy-ins (MBOs and MBIs), acquisitions, disposals and working capital fundraising. 

Our specialist team can support you throughout the process, from developing your acquisition strategy and researching the market to negotiating the price and structure and managing the transaction through to completion.  

To discuss your growth ambitions, call us on 0333 004 4488, email hello@brabners.com or complete our contact form.