US vitamin and nutritional supplement producer NBTY Inc is set to pay US$28m for NatureSmart.
Currently controlled by parent company Whole Foods Market Inc, the Colorado-based NatureSmart comprises of four divisions. HealthSmart Vitamins and Bio Energy Nutrients develop and produce health and personal care products. PhysioLogics manufactures specialised nutritional supplements and Brand Partners creates private label vitamins for specialty retailers and the mass market.
NBTY believes that the buyout will boost its position as market leader in terms of direct response vitamin sales. Cost-saving synergies will allow NatureSmart to capitalise on NBTY’s greater volume and marketing departments. NatureSmart will add to NBTY annual sales of around US$59m and net assets of US$19m.
Scott Rudolph, chaiman and CEO of NBTY, stated: “NBTY continues to capitalise on the weakness in the industry by making strategic acquisitions with advantageous terms. The NatureSmart acquisition will expand our leadership position in the marketing of nutritional supplements and provide growth opportunities for our operations.”
The acquisition is expected to close next week.
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