Carlyle Group to Buy NBTY for $3.8B

RONKONKOMA, NYNBTY Inc. (NYSE:NTY) has entered a merger agreement with the Carlyle Group, which will purchase the dietary supplement manufacturer for a total value of $3.8 billion, after purchasing outstanding NTY shares for a targeted $55 per share. NTY shares closed at about $37 the day before the merger announcement. While the NBTY board of directors has approved the merger, shareholders and regulatory officials will have to also approve the transaction, which is expected to close by the end of the calendar year 2010.

Scott Rudolph, chairman and CEO of NBTY, labeled the transaction an exceptional value for NBTY shareholders. For our wholesale and retail customers, our commitment to quality and innovation will continue to be our focus, he said. We will leverage Carlyle's global resources and consumer sector knowledge to further drive the Company's global growth."

Sandra Horbach, managing director and head of the consumer and retail sector team at Carlyle, called NBTY is an outstanding business with well-established brands, a proven vertically integrated multi-channel/multi-geography strategy and strong, long-standing customer relationships. She added, We are impressed with the business that has been built under the leadership of Scott Rudolph, and are excited to work with him and the senior management team to drive continued growth.

The transaction is fully funded by a combination of equity from Carlyle Partners V, a $13.7 billion U.S. buyout fund and external debt financing provided by BofA Merrill Lynch, Barclays Capital and Credit Suisse. Bank of America Merrill Lynch and Centerview Partners LLC are serving as financial advisors and Sullivan & Cromwell LLP is the legal advisor to NBTY. Barclays Capital and Credit Suisse are financial advisors to Carlyle, and Latham & Watkins LLP is the groups legal advisor.