Bulletproof 360 taps Morgan Stanley for sale, sources say

26 April 2019

Bulletproof 360, the venture-backed food, beverage and supplement company known for its butter-infused coffee line, has retained Morgan Stanley to explore a sale, said three sources familiar with the matter.

 

The Bellevue, Washington-based company generates north of USD 100m in revenue, two of the sources said, with one noting that it yields little profit.

 

The same source said that Bulletproof could fetch 3x revenue, or an enterprise value in the USD 500m range, in the event of a deal. One of the sources said that the company is in the early stages of considering a sale and has not yet launched a process.

 

Bulletproof was founded in 2013 by CEO Dave Asprey, a former technology executive and author of The Bulletproof Diet. The company, which bills itself as a lifestyle brand, sells sustainably-sourced coffee, MCT oils, collagen-infused protein powders and bars and health supplements, in addition to operating three café locations on the west coast.

 

Since inception, Bulletproof has secured over USD 60m in funding, according to a 2018 company press release. Most recently, last July, it raised USD 40m in Series C funding in a round led by CAVU Venture Partners and Trinity Ventures. In February, the company hired Cameron Kinloch, a former finance executive at dairy-alternative company Ripple Foods who has also worked for Box and Netflix, according to her LinkedIn page.

 

Strategics are the most likely contenders for Bulletproof, two of the sources and two sector advisors said, with one advisor noting that its low profit margins could deter financial sponsors.

 

The second sector advisor pointed to Nestle as a logical acquirer for Bulletproof. The Swiss NesCafe owner has been an active coffee buyer in recent years, purchasing a majority stake in California-based Blue Bottle Coffee in 3Q17, and paying USD 7.15bn to acquire Starbucks’ packaged coffee line in May 2018.

 

German conglomerate JAB Holding Company, which owns coffee chains such as Caribou Coffee and Peet’s Coffee, could also express interest in Bulletproof, the same advisor said.

 

Performance nutrition company Glanbia and Danone are other logical acquirers, said the second and first sources, respectively.

 

Bulletproof, Morgan Stanley, CAVU Ventures and Trinity Ventures did not return requests for comment.

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