Sale of Global Health, Subsidiaries Underway

ORANGE, Calif.--Global Health Sciences, which filed for bankruptcy protection in January, will close the sale of its American Ingredients subsidiary next week, and has entered a contract with NBTY for other assets of the company.

According to Howard Simon, president of American Ingredients, the U.S. Bankruptcy Court for the Southern District of California, on April 3 approved the sale of the assets of American Ingredients to Pharmachem Labs. The sale is scheduled to close on April 10. "Pharmachem had the best set of strategic reasons for its purchase," Simon said. He added that he would stay on as president of American Ingredients, which will operate as a division of Pharmachem. Pharmachem is based in Kearny, N.J.; its other subsidiary is H. Reisman.

Late Friday afternoon, NBTY released notice that it had entered a contract to purchase substantially all assets of Global Health Sciences Inc. and certain operating subsidiaries. NBTY's release noted that the subsidiaries to be purchased both manufacture nutritional supplements in California. The two remaining subsidiaries of Global Health Sciences are both contract manufacturers; D&F Industries specializes in tablets and capsules, while Omni-Pak focuses on powders and shakes. The sales price was not disclosed, and is subject to approval by the U.S. Bankruptcy Court.

At press time, calls to Global Health Sciences and NBTY had not been returned.