Rexall to be sold by Numico

A Reuters article states that Numico intends to sell Rexall and take a 1.4 billion euro charge, as well as putting GNC on probation.

Numico shares fell following the announcement of lower than expected third quarter numbers, and the company indicated it would focus on higher margin core sectors.

Numico purchased Rexall in 2000 for $1.8 billion, but has been disappointed by the competitive environment, lagging sales and management issues and is now being forced to write down a total of 1.443 billion euros of goodwill, including 1.386 billion euros for US supplement activities alone.

According to Reuters, the company also intends to close its European vitamin business and may consider spinning off Unicity. GNC is being placed under pressure to deliver results and margin in the next 12-18 months.

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