US vitamin supplier Weider Nutrition has sold two of its supplement brands to American Body Building Products, a wholly-owned subsidiary of Optimum Nutrition.
All assets and associated liabilities relating to the American Body Building and Science Foods brands will be taken over by the privately held company based in Illinois, US. The final sale price will be based on a closing statement of acquired assets and assumed liabilities, and will include approximately $5.65 million (€5.76m) cash and the assumption of an approximate $250,000 mortgage on the accompanying beverage facility in South Carolina.
Weider Nutrition, which also sells its branded and private label vitamins, supplements and sports nutrition products in Europe, said the net proceeds from the sale will be used to reduce the company's long-term debt. The company expects the transaction to negatively impact fiscal 2002 pre-tax financial results by approximately $8.7 million to $9.5 million, primarily resulting from impairment of intangible assets.
Bruce Wood, president and CEO, said: "As previously announced, we have been concentrating on improving profitability within our business units: Schiff Specialty Nutrition, Active Nutrition, and Haleko. To meet our goals, we are redirecting marketing resources to our flagship Schiff and Weider brands domestically. We see this transaction as a positive step towards fulfilling our long-term strategy."