Atrium Acquires Garden of Life

QUEBEC CITY—Atrium Innovations Inc. acquired Garden of Life Inc., a West Palm Beach, Fla.-based dietary supplement marketer. Atrium will pay Garden of Life an initial consideration of $35 million, including $2.5 million in newly issued common shares in Atrium, based on a 6.5 multiple of actual 2009 EBITDA; earn-out payments have been structured and will be based on a percentage of incremental EBITDA in 2010 and 2011 above a minimum growth level.

“By joining forces with Garden of Life, we strengthen Atrium’s footprint in the health and nutrition industry and rapidly expand our participation in a growing market segment,” said Pierre Fitzgibbon, Atrium’s president and CEO. “This new distribution channel complements our strength in the health care professional segment. ... [and] This acquisition offers Atrium significant opportunities for synergy and growth. We will distribute our flagship product, Wobenzym, through the Garden of Life network of health food and specialty stores. In addition, over time we will begin to manufacture the majority of the Garden of Life products in Atrium’s GMP [good manufacturing practice] manufacturing facilities.”

Garden of Life’s management team, including CEO Jordan Rubin and President Brian Ray, will retain their positions following the transaction. Rubin said, “I’m confident that our alliance will be highly beneficial to both companies, as well as to the steadily growing number of consumers seeking high quality products that they can rely on to help them stay healthy.”