Dutch food group Royal Numico has signed a letter of intent for the sale of Unicity Network to a US-based investment company, Activated Holdings. Numico said the transaction is subject to completion of a definitive agreement, expected to occur in the second quarter of 2003.
The news follows an announcement last week from supplement business Gateway Distributors, based in Las Vegas, that it had made an unsolicited bid for Unicity.
Headquartered in Utah, Unicity Network markets a range of nutritional supplements and personal care products. Sales amounted to €208 million in the first nine months of 2002, according to Numico.
Numico CEO Jan Bennink said: "The divestment of Unicity is in line with our strategy to focus on our core activities of babyfood, clinical nutrition and GNC, as announced in November 2002. This supports our main objective to become a high growth, high margin company."
The Dutch group is currently making changes to US operations after poor performances from this area last year. It has said it intends to divest vitamin maker Rexall Sundown and has also been looking into options for Unicity since late last year. The head of Numico's US operations has also stepped down. US activities are being temporarily run by Bennink.