Former GNC Exec Leaves Numico, May Buy Back Company 40881

Former GNC Exec Leaves Numico, May Buy Back Company

ZOETERMEER, The Netherlands--Royal Numico N.V.announced May 9 that William Watts resigned from the Supervisory Board of thecompany and expressed interest in acquiring the U.S. GNC operations incooperation with a U.S. venture capital firm. In its statement, Numico (www.numico.com)noted it has not made a final decision on selling GNC. However, GNC is currentlyon "probation" with Numico, which sold the European GNCs to NBTY inMarch 2003.

Watts was the president and chief executive officer (CEO) of GNCwhen Numico acquired the chain in August 1999 in a $2.5 billion deal; he made athree-year commitment to Numico at that point. In March 2001, he resigned as CEOof GNC and was appointed to the Supervisory Board of Numico.

There has been extensive media speculation about companies thatcould acquire GNC; Watts' interest did not come as a surprise to many industrymembers. "I have thought Bill Watts would be a likely acquirer of GNC,given that when he left his active job at Numico, he went to a private equityfirm," commented Scott Van Winkle, an industry analyst with Boston-basedAdams, Harkness & Hill (www.ahh.com)."GNC will be sold at a very depressed valuation, given that it is aturnaround, and someone with existing management business experience would behugely beneficial in turning the company around. Therefore, Bill Watts becomes avery attractive candidate, and he has the resources behind him to do theacquisition. GNC offers a significant opportunity if it can be turnedaround."

In its release, Numico added it would propose appointing HesselLindenbergh, currently a member of the executive board of ING Group, to thevacancy on the Supervisory Board.