Natrol Acquires Medical Research Institute
June 05 2007 - 6:00AM
Business Wire
Natrol, Inc. (Nasdaq:NTOL), a leading manufacturer and marketer of
nationally branded nutritional products, announced that it has
acquired Medical Research Institute (MRI). MRI, founded in 1997,
supplies high-quality sports nutrition products, such as CE2�,
NO2�, Pro-Nos� and Anabolic Switch�, which are primarily designed
to enhance work-out performance. The MRI brand carries a premier
position in the sports nutrition market. The brand identity is
underpinned by a reputation for innovative science. Notably, MRI
was the first company to launch nitric oxide based products in the
sports nutrition market. MRI's products are primarily distributed
through GNC. The acquisition provides for an initial purchase price
of $8.0 million in cash, and allows for potential earn-out payments
based upon the achievement of certain levels of EBIT (earnings
before interest and taxes) over the next three years. The Company
noted that, at present, MRI has working capital of approximately
$8.6 million including cash of approximately $4.0 million and no
debt. In 2006, MRI recorded revenue of approximately $21.4 million
with operating income of $3.1 million. It is expected that the
transaction will be immediately accretive. In the last 7 months,
MRI has launched a range of new leading edge products to the
market. Wayne Bos, Natrol�s President and CEO, commented, �We are
extremely excited about this opportunity as we continue in our
quest to become a diversified supplier of nutritional supplements.
MRI has unique intellectual property and an excellent, but somewhat
underdeveloped strategic position in this market. We believe that
we can help grow the business by improving manufacturing and
logistics capabilities, expanding into new geographic markets, and
extending the MRI product lines.� Ed Byrd, the founder and
principal shareholder of MRI, has a track record in building highly
successful businesses in the sports nutrition market and was a
founder of EAS, one of the most successful sports nutrition
companies. Mr. Byrd will continue to serve as MRI's Chairman and
Head of Research and Development. He commented, �We believe that
the combination of MRI and Natrol will prove to be formidable. Our
strong existing product mix and ongoing R&D effort will
complement Natrol well and we believe that their well-developed
operating infrastructure and developing global distribution
capabilities will enhance our ability to grow. We are pleased to
join their team and make our combined vision a reality.� Mr. Bos
concluded, �We are pleased to have quickly identified and executed
such a strong transaction with the capital we unlocked through the
recent sale and leaseback of our corporate facilities. This
acquisition will help accelerate our corporate development plan by
creating scale, synergies, and new avenues for growth. We are
especially excited to deepen an already talented management team,
to continue to expand our portfolio of intellectual property, and
to significantly reinforce our commitment to and capability for
research and development. We believe this deal marks the onset of a
new phase of our turnaround and are excited to demonstrate our
capabilities to our investors.� About Natrol � Nourishing the
Potential of Mind and BodySM Natrol, Inc. (Nasdaq:NTOL),
headquartered in Chatsworth, CA, has a portfolio of health and
wellness brands representing quality nutritional supplements,
functional herbal teas, and sports nutrition products. Established
in 1980, Natrol�s portfolio of brands includes: Natrol�, Prolab�,
Laci Le Beau�, Promensil�, Trinovin�, Nu Hair� and Shen Min�. The
company also manufactures supplements for its own brands and on
behalf of third parties. Natrol distributes products nationally
through more than 54,000 retailers, as well as internationally in
over 40 other countries through distribution partners and
subsidiaries in the UK and Hong Kong. Natrol�s dedication to
quality is evidenced by its commitment to high manufacturing
standards, earning the company an �A� rating from the Natural
Products Association's Good Manufacturing Practices (�GMP�)
Certification Program�a designation achieved by less than ten
percent of U.S. nutrition companies. For more information, visit
www.Natrol.com. The statements made in this press release which are
not historical facts, including statements regarding expectations
for future growth of revenue and profits and trends concerning net
sales, are 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. As a result of a number of factors, our
actual results could differ materially from those set forth in the
forward-looking statements. Certain factors that might cause our
actual results to differ materially from those in the
forward-looking statements include, without limitation: (i) our
ability to develop and execute our business plans, (ii) our ability
to respond to competitive challenges and changing consumer
preferences, (iii) our ability to consummate and integrate
acquisitions, (iv) increased competition, (v) unfavorable publicity
about dietary supplements in general or regarding our products or
similar products sold by others, (vi) our exposure to product
liability claims, our dependence upon certain large customers, and
(vii) our ability to retain and attract talented management and
other key employees, as well as those factors set forth under the
heading "Risk Factors" in our annual report on Form 10-K for the
year ended December 31, 2006, and in our other filings with the
Securities and Exchange Commission. (Images / Interviews / Samples
Available)
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