NBTY, a well known acquirer of distressed brands and businesses in the U.S. supplement industry, has acquired the assets of Leiner Health Products, a bankrupt private label manufacturer of vitamins and other dietary supplements.
NBTY announced that it has paid $371 million for the assets and the assumption of certain liabilities, but the price of the deal can move $110 million north or south of $371 million, based on the amount of working capital on Leiner’s balance sheet at closing. NBTY said it hopes to close the deal no later than September 2008. North Castle Partners and Golden Gate Capital recapitalized Leiner in 2004 for $650 million. Prior to that, North Castle Partners had been the sole investor in Leiner. NBJ estimated Leiner’s 2006 supplement sales at $550 million.
Founded in 1973 and headquartered in Carson, Calif., Leiner Health Products is a leading manufacturer of store brand vitamins, minerals, and nutritional supplements (VMS), as measured by retail sales, and supplies the food, drug, mass merchant and warehouse club (FDMC) retail market. Leiner provides the FDMC retailers with over 2,000 products to help its customers create and market high-quality store brands at low prices. It is also the largest supplier of VMS to the U.S. military. Leiner markets its own brand of vitamins under YourLife. In 2007, Leiner distributed more than 21 billion doses that help offer consumers high quality, affordable choices to improve their health and wellness.
NBTY is a leading global vertically integrated manufacturer, marketer and distributor of a broad line of high-quality, value-priced nutritional supplements in the United States and throughout the world. Under a number of NBTY and third party brands, the Company offers over 22,000 products, including products marketed by the Company’s Nature’s Bounty, Vitamin World, Puritan’s Pride, Holland & Barrett, Rexall, Sundown, MET-Rx, Worldwide Sport Nutrition, American Health, GNC, DeTuinen, LeNaturiste, SISU, Solgar, Good ‘n’ Natural, Home Health and Ester-C brands.
