Martek Buys Amerifit for $200M

COLUMBIA, Md.Martek Biosciences Corporation (NASDAQ: MATK) has agreed to plop down $200 million in cash to buy Amerifit Brands Inc. from Charterhouse Group, Inc. To purchase this health and wellness company, Martek will use $120 million in cash reserves and pay the rest via a newly established credit line . The transaction should close in Marteks second quarter this year, subject to customary closing requirements, and is expected to be accretive to Martek's earnings in fiscal 2010, although no expense synergies are expected. Canaccord Adams Inc., Hogan & Hartson LLP, and Miles & Stockbridge P.C. all assisted Martek with this aquisition.

Amerifit develops, markets and distributes products that focus on womens health and digestive health, with Estroven® being its popular womens product and Culturelle® probiotics being its flagship digestive brand. The companys first-class sales and marketing infrastructure and proven management team for selling branded consumer health and wellness products appealed to Martek, which said Amerifit will provide a platform for accelerating the commercialization of Marteks nutritional product pipeline.

"I am excited at the prospect of being able to develop consumer brands for some of the exciting new products in Martek's pipeline, exclaimed Steve Dubin, CEO, Martek. This new capability will enable Martek to move up the value chain by getting closer to the consumer and should result in increased revenue and gross profit opportunities."

Amerifit CEO Cyrill Siewert said the entire management team at Amerifit is thrilled to become part of the Martek family. "Amerifit's capabilities of marketing and growing leading consumer brands, along with Martek's promising product pipeline, robust R&D capabilities, and commitment to science-based products, is a compelling combination that should provide powerful opportunities for growth in the years ahead, he remarked.