Buyers tidy up purchases of supplement makers
the purchase of supplement maker Twinlab and its Twin Laboratories
The Hauppauge, New York-based firm is one of the largest supplement manufacturers in the US but this year's ephedra scandal severely damaged its profits. The weight loss herbal had accounted for 21 per cent of its $147 million in sales in 2002. This, combined with declining sales in mass marketing channels, led the firm in September to file for Chapter 11 reorganization with the Bankruptcy Court for the Southern District of New York.
It cited $91.5 million in assets and $116.5 million in liabilities, including $74 million in debt. The asset sale for $65 million in cash was approved on October 27 and closed on December 19.
New owner IdeaSphere is keen to get the company back on its feet and with personal-power guru Anthony Robbins on the board, looks set to pursue a rather different marketing strategy.
Meanwhile Zuellig Botanicals, doing business as BI Nutraceuticals (BI), also announced this week that it had finalized the purchase of substantially all of the assets of the dietary supplement business unit of Hauser.
Hauser and its subsidiaries filed voluntary petitions for chapter 11 reorganization on April 1. The sale to Zuellig Botanicals became final on December 15, 2003.
"We are extremely pleased that we are now in a strong position to expand our industry presence and leadership," commented BI president Peter Hafermann. "This transaction will allow BI to build a broader platform for growth as an ingredients and services supplier to the dietary supplements, food and pharmaceutical industries."