Pharmaceutical company Bayer AG has agreed to buy a majority stake in online personalized vitamin and supplement startup Care/of, Bayer confirmed to Bloomberg.
Bayer is acquiring 70% of the four-year-old company in a transaction that values Care/of at $225 million and gives Bayer the option to buy the rest by 2022, a source familiar with the matter told Bloomberg.
Bayer spokesman Dan Childs told Bloomberg it is an “important milestone” for both companies, but declined to disclose the financials.
Bayer believes Care/of’s business model and product can be expanded to traditional retail channels as the company hopes to reach new customers, Childs said.
Bayer and Care/of plan to grow across new channels and new categories, though right now Care/of is direct-to-consumer.
The subscription-based company was valued at $156 million in 2018 after