Healthspan buys Healthy Direct

Healthspan founder and chief executive Derek Coates, left, and Healthy Direct managing director Graham Winn celebrate the eight-figure deal that has brought together rivals which were once on opposite sides in a multi-million pound court case. (Picture by Peter Frankland, 0567907)

HEALTHSPAN has acquired Healthy Direct in an eight-figure deal to become the UK’s biggest direct supplier of nutrition supplements.

Both companies were started in Guernsey and together they will distribute more pills and vitamins in the UK than any other business, including Boots. Healthspan founder and CEO Derek Coates was unwilling to divulge exactly what the deal was worth but happy to list the benefits.

‘By joining forces with Healthy Direct we pool knowledgeable staff and buying power and reduce a lot of common costs such as warehousing, call centres, IT and central overheads. Together our monthly magazines will have a readership of nearly four million adults who are both time-rich and cash-rich. We will have more readers than The Times, Telegraph, Express, Observer and Independent put together. This also makes us a powerful media force for future developments.’

Rather than battle with one other for customers, the new operation will concentrate on further market consolidation as well as diversification of product ranges and the international market.

There will be no job losses in Guernsey and from May both businesses will operate from Healthspan’s Grange office.

Healthy Direct managing director Graham Winn will remain in post and will join the Healthspan board.

He said that a mutual respect and friendship had grown between the companies due to years of competition.

‘We’ve worked together with the States on UK legislation and developed a partnership from there.

‘Derek made an approach early this year. It’s really quite exciting, as two successful local companies are joining forces.

‘It’s a great opportunity for the Healthy Direct staff to come into a larger company that has flourished.

‘There are certain things that we can both learn from one another and it bodes well for the businesses and Guernsey as a whole.’

Article posted on 23rd April, 2008 - 2.29pm

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