IdeaSphere Closes Purchase of Metabolife Assets

HAUPPAUGE, N.Y.--Ideasphere Inc. (ISI) finally closed its deal to purchase certain non-ephedra-related assets of Metabolife International Inc., which is operating under Chapter 11 bankruptcy protection. Financial terms of the deal were not disclosed, but ISI had recently rescinded its initial offer of $23.5 million, accusing Metabolife of not operating its business as usual, and lowering its value assessment for the assets to near $14 million.

As a part of the newly minted transaction, ISI will now own core non-ephedra brands--Metabolife Ultra, Metabolife Complete, Metabolife Ultra Caffeine Free and Metabolife Green Tea Formula--as well as a state-of-the-art powder and tablet manufacturing facility located in Orem, Utah, and a distribution center in Memphis, Tenn. According to ISI, the newly-acquired products will continue to be marketed under the Metabolife brand, which will operate as a separate division within ISI.

These Metabolife assets are a great fit with our current operations and product lines, said Mark Fox, president of ISI. In addition to expanding our manufacturing, distribution and customer service capacity, Metabolife provides us with a platform to expand distribution on a global scale. He further said ISI is planning to enter the Asian market, including India and China, sometime in 2006.

According to Fox, the company will immediately integrate these assets and facilities into its existing operations. The Orem plant, which will increase the companys production capacity by billions of dose forms of tablets and powders, is located within minutes of an existing American Fork, Utah, Twinlab plant.