BOCA RATON, Fla., Feb. 23 /PRNewswire/ -- Rexall Sundown, Inc.
(Nasdaq: RXSD) today announced it has signed a definitive agreement to
purchase privately-held Worldwide Sport Nutritional Supplements, Inc., a
leader in the sports nutrition category with its line of PureProtein(R) bars
and shakes, as well as sports drinks, for $71.5 million in cash.
The acquisition of Worldwide, which will be accounted for as a purchase,
will be financed by Rexall Sundown's current line of credit. The transaction,
which is subject to regulatory and other approvals, is anticipated to close in
March 2000 and is expected to be slightly accretive in fiscal year 2000.
Based in Largo, Florida, Worldwide was founded in 1995 by David McCabe.
For the fiscal year ended December 31, 1999, Worldwide posted net sales of
approximately $42 million, and achieved annual compounded sales growth rates
in excess of 100% over the past two years. Worldwide is best known for its
leading branded sports nutrition supplements including Pure Protein(R) food
bars, Burn-IT(TM) food bars, Pure Protein Cookie(TM), Ultra Pure Protein
Shake(TM), Extreme Pure Protein(TM) drinks, as well as other sports nutrition
supplements. Worldwide products are primarily distributed through health food
stores and fitness centers, as well as food, drug and mass retailers.
In making the announcement, Damon DeSantis, Rexall Sundown's President and
Chief Executive Officer, stated, "The proposed acquisition of Worldwide will
expand our reach within the sports and active nutrition category and reflects
our strategy of becoming a leader across multiple segments within the
nutritional supplement industry. Our goal is to acquire strong brands and to
offer additional delivery forms which sell through multiple channels of
distribution."
Rexall Sundown, which acquired MET-Rx(R) in January 2000, has been
executing its strategy to diversify into new categories and delivery forms,
particularly in the sports nutrition and bar categories. The acquisition of
Worldwide, along with Met-Rx, will help strengthen Rexall Sundown's position
in this high growth category with two of the premier brands in the country.
DeSantis continued, "Upon consummation of this acquisition, we will become a
leader in bars and active nutrition, which will give us the opportunity to
capitalize on the recent consumer trends towards convenience, staying
healthier and pursuing more active lifestyles. In addition, when combined
with the MET-Rx acquisition, we will have critical mass in the sports and
active nutrition category which should enable us to leverage our current
infrastructure and help accelerate both our top and bottom line growth rates
over the long-term."
David McCabe, President and Chief Executive Officer of Worldwide, said,
"Our new partnership with Rexall Sundown and MET-Rx will give Worldwide the
opportunity to expand the distribution of its products and the ability to
capitalize on the product development strength and entrepreneurial spirit of
these two industry leaders."
DeSantis concluded, "Our financial position and cash flow remain strong
and we are continuing to appropriately leverage our balance sheet by financing
this transaction with debt. We continue to have the financial resources and
flexibility to pursue additional acquisitions to help achieve our strategic
goals."
Rexall Sundown, Inc., develops, manufactures and distributes vitamins,
nutritional supplements and other consumer health products in the United
States and internationally. Visit the Company's websites at
http://www.rexallsundown.com or http://www.rexall.com .
This press release may contain "forward-looking statements" as such term
is defined in the Private Securities Litigation Reform Act of 1995 or by the
Securities and Exchange Commission in its rules, regulations and releases,
which represents the Company's interpretation or beliefs. These
forward-looking statements, by their nature, involve substantial risks and
uncertainties, certain of which may be beyond the Company's control and actual
results may differ materially depending on a variety of important factors
including uncertainties related to acquisitions, government regulation,
managing and maintaining growth, the effect of adverse publicity, litigation,
reliance on independent distributors of Rexall Showcase, competition and other
factors described in the Company's filings with the Securities and Exchange
Commission.
SOURCE Rexall Sundown, Inc.
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Related links:
http://www.rexallsundown.com
CONTACT:
Investors, Donna Conners, or Press, Carol
Walters, both of Rexall Sundown, Inc., 561-241-9400, or General,
Karen Griffiths, Analysts, Vanessa Schwartz, both of The
Financial Relations Board, 212-661-8030
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