The developer, wholesaler and distributor, whose portfolio includes sports nutrition products, dietary supplements and health foods, will pay in excess of $3 million in cash and stock on completion of the transaction - expected to be on or around 31 March.
"DMI currently sells approximately 90 product lines with more than 1200 individual products, which complement our existing offering and add depth to our performance drink selection," said Dynamic CEO Mandeep Taneja.
With around $14 million in unaudited annual revenues, DMI is said to be the second largest distributor of performance drinks in the US. Its distribution centers are located in Cranston, RI and Henderson, NV.
"We are driving industry consolidation in order to leverage the resulting economies of scale,"added Taneja.
In October 2004 Dynamic completed its $5.5 million acquisition of Bob O'Leary Health Food Distributor Co. In its 3Q 2004 the company reported an increase in consolidated net revenues of more than 1000 percent compared with the 2003 quarter, which was attributed mainly to this acquisition.
It has also acquired the customer list of Protech Distributing for an undisclosed amount. In December the company entered into a letter of intent for the potential purchase of certain assets of an as-yet-undisclosed nutritional product manufacturer, marketer and distributor for $65 million in cash. The unaudited revenues for this potential acquisition for 2003 were said to be approximately $89 million.