BOCA RATON, Fla., Dec. 15 /PRNewswire/ -- Rexall Sundown, Inc.
(Nasdaq: RXSD) today announced it has signed a definitive agreement to
purchase privately-held MET-Rx Nutrition, Inc., a leader in the sports
nutrition and bar categories, for total consideration of $108 million.
The acquisition of MET-Rx, which will be accounted for as a purchase, will
be financed by a line of credit. The transaction, which is subject to
regulatory and other approvals, is anticipated to close in mid-January 2000
and is expected to be slightly accretive in fiscal year 2000.
In making the announcement, Damon DeSantis, Rexall Sundown's President and
Chief Executive Officer, stated, "The purchase of MET-Rx is consistent with
our previously stated strategy to acquire strong brands, expand our retail
product offerings to include sports nutrition, enhance our distribution in the
health and natural food channel and offer multi-brand products in additional
forms such as bars and powders." Rexall Sundown believes that there are
opportunities for revenue and cost synergies over the long-term, which will
help accelerate the Company's growth rates, especially given the mainstream
acceptance of the functional food and bar category, which is currently growing
at strong double-digit rates. "The business philosophy of MET-Rx is also
consistent with our commitment to devote significant resources to develop
innovative, leading edge, science-based products," said DeSantis.
Based in Irvine, Calif., MET-Rx was founded in 1991 by A. Scott Connelly,
M.D. The principal shareholders are Dr. Connelly and The Shansby Group, a
San Francisco-based private equity partnership. For the fiscal year ending
December 31, 1999, MET-Rx is expected to post net sales of approximately
$105 million, and has achieved annual growth rates of 30% in each of the past
two years. MET-Rx is best known for its leading branded sports nutrition
supplements including MET-Rx(R) powdered protein Total Nutrition Drink Mixes,
MET-Rx Protein Plus(TM) food bars, Source One(TM) food bars and MET-Rx Natural
Krunch bars, as well as other sports nutrition supplements. MET-Rx's primary
ingredient, Metamyosyn(R), is a proprietary high quality protein formulation
that helps maximize the body's ability to build lean muscle. MET-Rx products
are primarily distributed through the health and natural food channel, as well
as food, drug and mass retailers, club stores, fitness centers and convenience
stores.
Dr. Connelly, Chairman and Chief Technical Officer of MET-Rx, said, "We
are extremely excited about the opportunity to partner with such a highly
respected leader in the nutrition industry. We feel this merger gives MET-Rx
the opportunity to further expand the distribution of its proprietary,
science-based products, and increase its market leadership position in the
sports nutrition and bar categories. In addition, Rexall Sundown's strategy
of being first to market with new, innovative, consumer-oriented nutritional
products is consistent with the goals of MET-Rx."
DeSantis concluded, "While we will be financing this transaction with
debt, our balance sheet and cash flow remain strong. 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.rexallshowcase.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 represent 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 the Company's network marketing
subsidiary, Rexall Showcase International, 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
Related links:
http://www.rexallshowcase.com
CONTACT:
Investors, Donna Conners, or Press, Carol
Walters, of Rexall Sundown, Inc., 561-241-9400, or General, Karen
Griffiths, or Analysts, Vanessa Schwartz, of The Financial
Relations Board, 212-661-8030
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