Schiff Nutrition International Acquires Leading Probiotic Brands and Rights to Probiotic Technology
02 Junho 2011 - 8:00AM
Business Wire
Schiff Nutrition International, Inc. (NYSE: WNI), through its
subsidiary Schiff Nutrition Group, Inc., purchased certain assets
and assumed certain liabilities of Ganeden Biotech, Inc. (Ganeden)
for $40 million in cash utilizing its existing revolving credit
facility. Schiff now owns (1) the worldwide exclusive rights to use
the leading probiotic technology
GanedenBC30® (BC30, Bacillus coagulans GBI-30,
6086) in the over-the-counter and dietary supplement space and (2)
the leading brands Sustenex® and Digestive Advantage® under which
BC30 is currently sold. Ganeden and Schiff also intend to
collaborate on extending the use of probiotic technologies into new
areas of human health.
The probiotics category is growing over 20% on an annualized
basis, according to Nutrition Business Journal. BC30 has over 95 US
and foreign patents and patent applications. Its successful
probiotic bacteria strains have been shown to be hardier than other
probiotic strains. BC30 exhibits excellent stability and offers
more flexibility in manufacturing and delivery systems. Recently
BC30 was introduced in gummies and chews, providing consumers an
easier way to take supplements.
Tarang Amin, president and chief executive officer of Schiff
Nutrition, stated: “Our focus is to deliver shareholder value by
building premium brands and leading innovation. By acquiring the
rights to the leading probiotics technology, we have entered a new,
rapidly expanding category that creates accretive growth
opportunities.
“We believe BC30 has many inherent physical properties that make
it superior to other traditional probiotic organisms. We intend to
leverage this enviable technology and grow the Sustenex and
Digestive Advantage lines. In addition, we plan to capitalize on
Schiff’s brand marketing know-how, provide incremental marketing
investment and use our well established customer relationships to
increase distribution,” Amin concluded.
The assets and brands acquired from Ganeden generated net
revenue of approximately $17 million for the year ended December
31, 2010. This transaction is expected to increase Schiff’s net
revenues and, excluding one-time costs, be accretive to earnings
for its fiscal year ended May 31, 2012. Management
intends to address the impact of the acquisition on the company’s
financial position when it announces its fourth quarter and fiscal
2011 financial results scheduled for July.
About Sustenex www.schiffnutrition.com
Sustenex® with GanedenBC30® has harnessed the power of
probiotics in a full line of probiotic products to offer you and
your entire family simple solutions to help support digestive and
immune health. Sustenex is unique because it contains
GanedenBC30 (Bacillus coagulans GBI-30, 6086), a special
strain of probiotic bacteria that is able to better survive stomach
acids to reach the digestive tract where they offer the greatest
benefit.
About Digestive Advantage www.schiffnutrition.com
Digestive Advantage® has been clinically shown to help defend
against occasional digestive upsets. Its products, available at
over 70,000 retail stores nationwide, include Intensive Bowel
Support, Lactose Defense Formula, Gas Defense Formula, and Daily
Constipation Formula.
About Schiff Nutrition
Schiff Nutrition International, Inc. develops, manufactures,
markets and distributes branded and private label vitamins,
nutritional supplements and nutrition bars in the United States and
throughout the world. Schiff’s portfolio of well-known brands
includes Move Free®, Schiff® Vitamins, MegaRed®, Mega-D3™, Tiger's
Milk® and Fi-Bar®. To learn more about Schiff, please visit the web
site www.schiffnutrition.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 that are based
on management’s beliefs and assumptions, current expectations,
estimates, and projections. These statements are subject to known
and unknown risks and uncertainties, certain of which are beyond
the company’s ability to control or predict, and therefore, actual
results may differ materially. Any forward-looking statements are
made pursuant to the Private Securities Litigation Reform Act of
1995 and, as such, speak only as of the date hereof. Schiff
Nutrition disclaims any obligation to update any forward-looking
statements whether as a result of new information, future events or
otherwise. You are cautioned not to place undue reliance on these
forward-looking statements.
Important factors that may cause actual results of Schiff
Nutrition to differ materially from those expressed or implied by
such forward-looking statements include, but are not limited
to: the inability to project the future impact of the acquired
assets and assumed liabilities on our business, financial condition
and results of operation; the inability to realize anticipated
returns on our investment in BC30 and the development of other
probiotic technologies; the inability to grow the Sustenex and
Digestive Advantage brands and leverage our existing marketing
know-how and distribution channels to achieve anticipated sales
levels for these product lines; uncertainties relating to our
intended collaboration with Ganeden, including the inability to
extend the use of probiotic technologies; dependence on sales of
our Move Free product and the joint care category, dependence on
individual customers, adverse publicity or consumer perception
regarding our nutritional supplements and/or their ingredients,
similar products distributed by other companies or the nutritional
supplement industry generally, the impact of competitive products
and pricing pressure (including expansion of private label
products), the inability to successfully bid on new and existing
private label business, the impact of raw material pricing,
availability and quality (particularly relating to joint care
products and ingredients from third-party suppliers outside the
United States, including China), claims that our products infringe
the intellectual property rights of others, the inability to
enforce or protect our intellectual property rights and proprietary
techniques against infringement, the inability to successfully
launch and maintain sales (especially in the joint care and omega-3
categories) outside of the United States while maintaining the
integrity of the products sold and complying with local
regulations, the inability to appropriately respond to changing
consumer preferences and demand for new products, the inability to
gain or maintain market distribution for new products or product
enhancements including products in the probiotic space, litigation
and government or administrative regulatory action in the United
States and internationally, including FDA enforcement and product
liability claims, the inability or increased cost to obtain
sufficient levels of product liability and general insurance, the
inability to comply with existing or new regulations, both in the
United States and abroad, and adverse actions regarding product
formulation, claims or advertising, product recalls or a
significant amount of product returns, dependence on a single
manufacturing facility and potential disruptions of our
manufacturing operations, the inability to find strategic
transaction opportunities or the inability to successfully
consummate or integrate a strategic transaction, the inability to
maintain or attract key personnel, interruptions to our information
technology systems, control by our principal stockholders, and
other factors indicated from time to time in the company’s SEC
reports, copies of which are available upon request from the
company’s investor relations department or may be obtained at the
SEC's web site (www.sec.gov). These
risks and uncertainties should be carefully considered before
making an investment decision with respect to shares of our common
stock.
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