NBTY Buys Solgar

BOHEMIA, N.Y.--NBTY Inc. (NYSE:NTY) has agreed to purchase Leonia, N.J.-based Solgar Vitamin and Herb, a division of Wyeth Consumer Healthcare (NYSE:WYE), in a $115 million transaction involving approximately $64 million in Solgar assets--with adjustment to purchase price based on the value of Solgar assets at closing. The deal, subject to regulatory and other customary approvals, is expected to close by August 2005.

Solgar, which has manufactured extensive lines of branded nutritional supplements since 1947, posted 2004 revenues of $105 million. The company sells products in more than 5,000 health food stores, natural product stores, natural pharmacies and other specialty stores in the United States, as well as in 40 countries and every major international region.

Solgar will strengthen NBTYs presence in the health food store market, said Scott Randolph, chairman and chief executive officer of NBTY, which manufactures and distributes numerous nutritional supplement brands, including Natures Bounty, Vitamin World, MET-Rx, Rexall, Puritans Pride, Sundown, GNC (U.K.) and WORLDWIDE Sport Nutrition. The Solgar brand will be focused on serving the needs of the independent health food stores across the United States. He added the acquisition has significant potential to spur NBTYs future growth both nationally and internationally.

Douglas Petkus, spokesperson for Wyeth, explained the sale of Solgar allows Wyeth Consumer Products to focus on its core supplement business, which is Centrum. We want to concentrate on the retail outlets in the mass market, he said. Solgar is primarily sold in specialty and health food markets, which is out of the chain of commercial distribution for all of our other products; so it made sense strategically to make this transaction--it is a win-win for everyone.

Harvey Kamil, president and chief financial officer of NBTY, said Solgar personnel and operations will not change. We will have a operation totally dedicated to the independent health food store owners, he said. We expect to add new products and make the Solgar brand the best brand for health food stores.