NeutraHealth has become the UK’s largest provider of private-label vitamins and supplements after buying one of its rivals.

The group has added Perrigo UK, a supplier to retailers such as Tesco, Sainsbury and Superdrug, to its stable of brands in a £6.4 million deal.

This is the latest part of NeutraHealth’s consolidation strategy, which has included the acquisitions of BioCare, Brunel Healthcare, Health Products for Life and the Galloways and Gerard House brands and herbal licenses.

NeutraHealth deputy chairman Michael Toxvaerd said this is a significant development. “We are well placed to improve our profitability in the next 18 months, and we have a group structure that can easily support further significant acquisitions.”

The deal was funded by NeutraHealth’s existing resources and through the disposal of its over the counter (OTC) medicines business for £6.2 million to the vendor of Perrigo UK.

NeutraHealth decided to sell its OTC business as part of its board’s strategy to focus on its vitamins, minerals and supplements operations.

The acquired company, which reported an EBITDA of £200,000 in the year to May 2007 on a £14.9 million turnover, will now trade as Brunel Healthcare.