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Jamieson Wellness: A Healthy But Pricey Choice

Jun. 04, 2020 9:31 AM ET
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TSI Wealth Network


  • Dominant supplier of dietary supplements in Canada.
  • Limited progress to-date to expand the business outside Canada.
  • Benefited from the consumer stock-up on vitamins during COVID-19 pandemic.
  • Full valuation and high-growth expectations could lead to disappointment.

[Please note that all currency references are in the Canadian dollar except if indicated otherwise.]

Jamieson Wellness $31.68 (Toronto symbol JWEL) is a manufacturer and distributor of nutritional supplements and sports drinks headquartered in Toronto, Canada. The company commenced trading on the Toronto stock exchange in its current form on July 7, 2017.

Jamieson is at the crossroads. It will either remain a small business dominating the Canadian dietary supplements market or it can transition into a much larger business with a significant presence in China and the U.S. Investors seem to be optimistic that this will happen; we believe there are considerable risks and would prefer to wait for more evidence that the strategy is working.

The history

The origins of the company date back to 1922 when it was established by Dr. Claire Jamieson in Detroit. The business remained in the Jamieson family until the 1960s when it was sold to Henry Margolis, one of the founding members of Diners Club. In 2014, his son, Eric, who inherited the company in 1989, sold control of Jamieson laboratories to the private equity firm CCMP Capital Partners for $83.5 million. Three years later, CCMP listed the company with an initial market capitalization of over $500 million.

With CCMP came professional management. In 2014, Mark Hornick was appointed President and Chief Executive Officer and Chris Snowden as Chief Financial Officer. They continue to hold those positions.

Hornick previously worked in senior roles at Fiera Foods, Maple Leaf Foods, and Reckitt Benckiser Scandinavia. Snowden worked in financial control roles at Sofina Foods, SunOpta, and Deloitte & Touche before joining Jamieson. These senior executives sold the bulk of their shareholdings at the time of the listing.

After the listing, CCMP held 45% of the issued shares but has subsequently passed their shares on to investors

This article was written by

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Established in 1995, The Successful Investor Network has two businesses: an established group of renowned investment publications and a thriving Wealth Management service. The newsletters offer investors a range of investment styles, and the newsletters’ portfolios regularly top the market indexes. Our Wealth Management group, built on a conservative investment approach and low fee structure, oversees hundreds of millions of dollars for private clients. Pat McKeough, one of Canada’s most respected investment analysts and writers, is the founder and president of both companies.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure: By Deon Vernooy, CFA, for TSI Network

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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