Acquisition provides Atrium with a complementary platform in the Canadian Market
Atrium Innovations Inc. (TSX: ATB), a recognized leading developer, manufacturer and marketer of professionally endorsed, science-based products for the health and nutrition industry, today announced the purchase of the assets of Trophic Canada, a leading manufacturer and distributor of vitamins, minerals and herbal supplements in the Canadian Health Food Store (HFS) market.
Trophic's two brands, Trophic and Wild Rose, comprising 150 products, are sold in over 900 specialized health food stores. The Company was founded in 1967 and is well known for its superior quality ingredients, formulations, rigorous testing and good manufacturing practices. Over the years, Trophic's brands have gained a solid reputation within the Health Food Store channel in the Canadian natural health industry. The annualized revenues of Trophic are approximately US$7.5 million.
"The acquisition of Trophic will provide Atrium with a stronger and complementary foothold and greater visibility in the Canadian market," said Pierre Fitzgibbon, Atrium's President and CEO. "Trophic's respected brands are supported by a well established access to the Health Food Store channel. The two brands' high quality products, approach to science and market positioning are a perfect fit with Atrium's DNA. We see considerable potential to grow Trophic and leverage its distribution strength by adding complementary products and by gaining direct access to the specialty retailers in the Canadian market. As we are a relatively small player in the Canadian market, this transaction clearly signals our accelerating emphasis on growing Atrium in its multi-channel strategy and our aim of assuming a major role in our domestic market."
Under the terms of the transaction, Atrium acquired the assets of Trophic for a total cash consideration of approximately US$11 million without any forward purchase price adjustments. The acquisition is immediately accretive to earnings without factoring future revenues and operating synergies. The transaction was completed with an effective date of March 17, 2010.