NBTY™ Inc., a global leader in vitamins, nutritional supplements and sports and active nutrition, announced it has entered into a definitive agreement to sell its U.S. retail business, Vitamin World®, to Centre Lane Partners. The transaction is expected to close by mid-February 2016. The deal will enable Vitamin World to operate as a stand-alone retail business.
A leader in the wellness industry and portfolio company of The Carlyle Group, NBTY is the owner of several of the most recognized brands in the marketplace, including Nature’s Bounty®, Sundown Naturals®, Osteo Bi-Flex®, Solgar®, MET-Rx®, Pure Protein®, Body Fortress®, Puritan’s Pride®, Holland & Barrett® and many others.
Centre Lane Partners is a private investment firm focused on making investments in North American middle market companies across a broad range of industries. Centre Lane targets companies with revenues between $20 million and $500 million that have leading market positions and sustainable competitive advantages in their respective niches.
“Vitamin World has a long history of meeting its customers’ wellness needs. For some time, it has been clear that it should be a stand-alone business with the right investment and resources tailored to a retail operation," said Steve Cahillane, president and CEO of NBTY. “With the shift of NBTY’s focus in our U.S. business to investing in and building our core brands, this sale of Vitamin World to Centre Lane Partners will ensure Vitamin World has the right investment and focus on its future as a stand-alone retail business."
Vitamin World began in 1976 with a kiosk in Williamsville, New York. Today, there are 380 Vitamin World stores in the United States, Guam, the Virgin Islands and Puerto Rico.
According to documentation from the United States Securities and Exchange Commission, the aggregate consideration for the business (Vitamin World and certain assets, including associated real property) is approximately $25 million, consisting of cash and a promissory note from the purchaser, and is subject to certain post-closing adjustments.
The completion of the transaction is expected to occur during the second quarter of fiscal 2016 and is subject to certain customary closing conditions.
Latham & Watkins LLP acted as legal advisor and Lazard Middle Market LLC as the financial advisor to NBTY in connection with the transaction. Katten Muchin Rosenman acted as legal advisor and Alvarez & Marsal as the financial advisor to Centre Lane Partners in connection with the transaction.