Hauser Selling Botanicals Division

LONGMONT, Colo.--Continuing its attempt to restructure after its April Chapter 11 bankruptcy filing, Hauser Inc. will sell its Botanicals International Extracts subsidiary to Zuellig Botanicals Inc. (ZBI). Announced Oct. 24, the sale is subject to approval by U.S. Bankruptcy Court, Central District of California, but is expected to close within 60 days and bring between $8.2 million and $9.2 million to Hauser. The company will use a portion of the proceeds to pay down its $8.6 million debt to its senior creditor.

Hauser noted it is seeking strategic buyers for its remaining business units--Hauser Technical Services and ZetaPharm Inc. On Oct. 23, Hauser closed the sale of its policosanol assets (products, patent rights, licenses, etc.) to Wyeth Consumer Healthcare for $500,000 plus future payments based on a percentage of future net sales.

ZBI is a subsidiary of the Zuellig Group, a 34-percent shareholder of Hauser that could own approximately 43 percent of Hauser if it exercises its outstanding warrants. ZBI does business as BI Nutraceuticals (www.botanicals.com) in Long Beach, Calif. According to a Hauser spokesman, ZBI plans to merge the Botanicals International operations with its existing BI Nutraceuticals business.