NBTY Buys Solgar 39922

NBTY Buys Solgar

BOHEMIA, N.Y.NBTY Inc.(NYSE:NTY) has agreed to purchase Leonia, N.J.-based Solgar Vitamin and Herb, adivision of Wyeth Consumer Healthcare (NYSE:WYE), in a $115 million transactioninvolving approximately $64 million in Solgar assetswith adjustment topurchase price based on the value of Solgar assets at closing. The deal, subjectto regulatory and other customary approvals, is expected to close by August2005.

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

Solgar will strengthen NBTYs presence in the health foodstore market, said Scott Randolph, chairman and chief executive officer ofNBTY, 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 befocused on serving the needs of the independent health food stores across theUnited States. He added the acquisition has significant potential to spurNBTYs future growth both nationally and internationally.

Douglas Petkus, spokesperson for Wyeth, explained the sale ofSolgar allows Wyeth Consumer Products to focus on its core supplement business,which is Centrum.We want to concentrate on the retail outlets in the massmarket, he said. Solgar is primarily sold in specialty and health foodmarkets, which is out of the chain of commercial distribution for all of ourother products; so it made sense strategically to make this transactionit isa win-win for everyone.

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