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 harder 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.