Optimum Nutrition Buys Weider Line

SALT LAKE CITY--Weider Nutrition International, based here, sold all assets and associated liabilities relating to its American Body Building (ABB) brand, which includes the Science Foods brand, to American Body Building Products, a newly formed, wholly owned subsidiary of Aurora, Ill.-based Optimum Nutrition. According to Weider, the net proceeds from the sale--which will include $5.65 million in cash--will be used to reduce its long-term debt.

"As previously announced, we have been concentrating on improving profitability within our business units: Schiff Specialty Nutrition, Active Nutrition and Haleko," said Bruce Wood, Weider president and chief executive officer (CEO). "To meet our goals, we are redirecting marketing resources to our flagship Schiff and Weider brands domestically." He added that the company sees this transaction as a positive step forward in fulfilling its long-term strategy.

The ABB brand was bought by Weider in 1995, according to BodyBuilding.com, and is made up of bottled and powdered drinks marketed for energy, recovery and weight control. The products have primarily been distributed to health clubs and gyms. According to Optimum Nutrition, its own products sell in health food stores and gyms, but ABB has a stronger foothold in the gym sector and has a strong distribution network throughout all 50 states. "ABB's dominance within the sports beverage segment combined with Optimum Nutrition's core competency in sports nutrition has made this new addition a good fit with our existing line," stated Tony Costello, CEO of Optimum Nutrition (www.optimumnutrition.com). "We are now the only sports nutrition company in the industry to manufacture items for all of its product categories."

The final sale price of the brands will be based on the closing statement of acquired assets and assumed liabilities, which includes the assumption of a $250,000 mortgage on the accompanying ABB beverage facility in Walterboro, S.C. Weider reported the transaction will negatively impact fiscal 2002 pre-tax financial results by approximately $9 million, primarily due to impairment of intangible assets.

Weider (www.weider.com) sales in fiscal 2001, which ended May 31, 2001, were down 3.4 percent with net profit coming in at $211,000, down 80 percent from $1.1 million logged in fiscal 2000. In December 2001, the company attempted to cut its losses by laying off 25 staff members, eliminating various departments and organizing Weider into three units.