NBTY has agreed to purchase rival Leiner Health Products for an estimated $371 million. Leiner is currently involved in Chapter 11 bankruptcy proceedings despite pulling in an estimated $553 million in sales in 2006, according to NBJ research.
NBTY also reported strong sales for the month of May, with an 11% gain over the same period in 2007. Sales were driven by NBTY’s Wholesale/US Nutrition division, which posted a 27% gain over 2007. Direct sales also remained strong, gaining 9%, whereas retail sales are down 7% in North America and 4% in Europe. As a result of its announced acquisition and strong sales report, NBTY stock prices have gone up about 3%.
NBTY Chairman and CEO, Scott Rudolph, said: "The Leiner acquisition reflects our ongoing efforts to better meet the needs of our customers by providing them with the highest quality service and continuous product supply. We continue to seek acquisitions which will enhance our position as the worldwide leader in the nutritional supplement industry and further our ongoing efforts to generate growth and increase shareholder value."
NBTY reported sales of over $2 billion in 2007 and first quarter 2008 results indicate that number will rise. NBJ research ranked NBTY as the number one selling supplement manufacturer in the U.S. in 2006. Leiner was ranked number two. Obviously, the implications for NBTY are positive as it was able to increase its product portfolio and eliminate a chief rival as well. This solidifies NBTY’s status as the largest supplement manufacturer in the industry.