Weider Sells Active Nutrition BrandsWeider Sells Active Nutrition Brands
May 23, 2005
Weider Sells Active Nutrition Brands
SALT LAKE CITY
WeiderNutrition International Inc. (NYSE:WNI), based here, sold assets of its Active Nutrition business toWeider Health & Fitness (WHF), its Woodlands, Calif.- based, privately-ownedparent company. Under terms of the agreement, WNI will receive $14 million forinventory, intangible and intellectual property and capital stock of certaininternational subsidiaries related to Active Nutrition, which includes theWeider and Tigers Milk brands.
As a condition of the sale, which closed April 1, WHF will also assumecertain liabilities. WNI will continue to provide sales, administrative andlogistical support to the Active Nutrition business in return for annual feesand it will also continue to use the Weider brand for corporate purposes, whileit transitions to a new company name.
WNI management said the sale will allow the company to focus on its flagshipSchiff brand, as well as its struggling European business, Haleko. Sales fromthe German-based subsidiary slipped 5 percent for the third quarter ended Feb.28, compared to a year ago. The unit posted a net loss of $2.1 million, downfrom a net gain of $0.9 million for 3Q 2004.
For the same quarter, Schiff brand sales were down 4 percent, and earningsdampened to $2.9 million from $4.2 million earned a year ago. Active Nutritionperformed well, increasing sales by 10 percent, as earnings of $1.2 millionemerged from a $0.9 million loss the year prior. Overall, WNI revenues fell 3percent to $65.6 million, while net income halved to $1.2 million or $0.05 pershare.
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