Advantage Marketing Agrees to Buy Universal Nutrition
October 24, 2000
OKLAHOMA CITY--Advantage Marketing Systems (AMEX:AMM), a marketer of nutritional products, has signed a letter of intent to acquire Universal Nutrition Corp. (UNC), a developer of health, diet and beauty products, and its three affiliated companies. Terms of the agreement were not disclosed, and the acquisition is subject to approval by shareholders and the execution of a definitive agreement.
AMS currently has a distributor base of 80,000 and a product line of more than 100 natural nutritional supplements, weight management products, skin and hair care products, cosmetics and herbal-based formulations. UNC sells its 30-product line through direct mail, infomercials and the Internet. It expects to post fiscal year 2000 sales of $35 million with pre-tax profits surpassing $5 million. Projected 2001 sales are $50 million with pre-tax profits in the neighborhood of $6 million.
According to AMS, the acquisition would give it exclusive worldwide distributor rights for UNC's proprietary product line and the marketing leverage via television and the Internet.
For more Information, visit www.amsonline.com.
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